Question
When a company buys equipment for $151,000 and pays for one fourth in cash and the other three fourths is financed by a note payable,
When a company buys equipment for $151,000 and pays for one fourth in cash and the other three fourths is financed by a note payable, which of the following are the effects on the accounting equation?
A. Total assets increase $151,000.
B. Total liabilities increase $151,000.
C. Total assets increase $113,250.
D. Total liabilities decrease $37,750.
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Managerial Accounting
Authors: Ronald W Hilton
7th Edition
0073022853, 978-0073022857
