Question
When a company buys equipment for $162,000 and pays for one third in cash and the other two thirds is financed by a note payable,
When a company buys equipment for $162,000 and pays for one third in cash and the other two thirds is financed by a note payable, which of the following are the effects on the accounting equation?
Total assets increase $162,000.
Total liabilities decrease $54,000.
Total liabilities increase $162,000.
Total assets increase $108,000.
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Management Accounting A Business Planning Approach
Authors: Noah P. Barsky, Jr. Anthony H. Catanach
2nd Edition
1516506286, 978-1516506286
