1. When the company pays rent expense for the current month, what is the effect on the accounting equation for that company?

		Decrease stockholders' equity and increase assets.
		Increase liabilities and increase assets.
		Decrease assets and decrease liabilities.
		Decrease assets and decrease stockholders' equity.

2. What is the effect of purchase of equipment on account on the accounting equation?

		No net effect to the accounting equation.
		Decrease assets and increase liabilities.
		Increase assets and increase liabilities.
		Decrease assets and decrease liabilities.