If a company purchases equipment costing $6,100 on credit, the effect on the accounting equation would be: Multiple Choice Assets increase $6,100 and liabilities decrease $6,100. Equity decreases $6,100 and liabilities increase $6,100. One asset increases $6,100 and another asset decreases $6,100. Assets increase $6,100 and liabilities increase $6,100. Equity increases $6,100 and liabilities decrease $6,100.