Question 3 CLO1: If a company purchases equipment for AED 1,500 on credit, the effect on the accounting equation will be: assets increase by AED 1,500 and liabilities decrease by AED 1,500. assets increase by AED 1,500 and liabilities increase by AED 1,500. assets decrease by AED 1,500 and liabilities increase by AED 1,500. assets decrease by AED 1,500 and liabilities decrease by AED 1,500