If a company purchases equipment costing $3,100 on credit, the effect on the accounting equation would be: Multiple Choice Assets increase $3,100 and liabilities decrease $3,100. O Equity decreases $3,100 and liabilities increase $3,100. One asset increases $3,100 and another asset decreases $3,100. Assets increase $3,100 and liabilities increase $3,100, Equity increases $3,100 and liabilities decrease $3,100