Question
When a company buys equipment for $159,000 and pays for two thirds in cash and the other one third is financed by a note payable,
When a company buys equipment for $159,000 and pays for two thirds in cash and the other one third is financed by a note payable, which of the following are the effects on the accounting equation?
Total assets increase $53,000.
Total liabilities decrease $106,000.
Total assets increase $159,000.
Total liabilities increase $159,000.
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Cornerstones Of Managerial Accounting
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
4th Edition
978-0538473460, 0538473460
