Equipment is classified on the balance sheet as A. a long-term investment. B. a current asset. C. an intangible asset. D. property, plant, and equipment. The cash payment of a liability A. decreases assets and increases liabilities. B. decreases assets and stockholders' equity. C. increases assets and decreases liabilities. D. decreases assets and liabilities. Which of the following would not create a cash flow? A. Payment of a cash dividend. B. The company purchases equipment by signing a note. C. Sale of equipment at book value. D. Purchase of a equipment. The Harrington Company purchased equipment for $5,000 on January 1. It is estimated that annual depreciation on the computer will be $1,000. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: A. debit Depreciation Expense, $1,000; credit Equipment, $5,000. B. debit Depreciation Expense, $1,000; credit Accumulated Depreciation, $4,000. C. debit Depreciation Expense, $1,000; credit Accumulated Depreciation, $1,000. . D. debit Equipment, $5,000; credit Accumulated Depreciation, $5,000