A debt that a business owes to an outside party is called: Your answer: O An Asset o Liability O Stockholders' Equity o Revenue Clear answer estion Equipment is sold for cash in an amount equal to the cost of the equipment recorded on the books. How does this sale affect the accounting equation Your answer: 0 One asset Increases, one asset decreases Assets increase, liabilities increase Assets increase: liabilities decrease Assets increase; owner's equity increases Gear