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A supplier to Kraft Foods, Inc. purchased plant equipment costing $ 2 5 , 0 0 0 with cash. The effect on the accounting equation

 

A supplier to Kraft Foods, Inc. purchased plant equipment costing $25,000 with cash. The effect on the accounting equation would be:

One asset decreases $25,000 and another asset increases $25,000

Assets increase $25,000 and liabilities decrease $25,000

Expenses increase $25,000 and assets decrease $25,000.

Assets increase $25,000 and expenses increase $25,000.

Expenses decrease $25,000 and assets increase $25,000.

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