Question
When a company buys equipment for $163,000 and pays for one fourth in cash and the other three fourths is financed by a note payable,
When a company buys equipment for $163,000 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?
Multiple Choice:
Total assets increase $122,250.
Total assets increase $163,000.
Total liabilities decrease $40,750.
Total liabilities increase $163,000.
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Cost Accounting A Managerial Emphasis
Authors: Charles T Horngren
5th Edition
0131796712, 978-0131796713
