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If a company purchases equipment costing $4,900 on credit, the effect on the accounting equation would be: Multiple Choice Assets increase $4,900 and liabilities decrease

If a company purchases equipment costing $4,900 on credit, the effect on the accounting equation would be:

Multiple Choice

  • Assets increase $4,900 and liabilities decrease $4,900.

  • Equity decreases $4,900 and liabilities increase $4,900.

  • One asset increases $4,900 and another asset decreases $4,900.

  • Assets increase $4,900 and liabilities increase $4,900.

  • Equity increases $4,900 and liabilities decrease $4,900.

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