Question
When a company buys equipment for $168,000 and pays for one third in cash and the other two thirds is financed by a note payable,
When a company buys equipment for $168,000 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?
A. Total assets increase $112,000.
B. Total liabilities decrease $56,000.
C. Total liabilities increase $168,000.
D. Total assets increase $168,000.
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Financial And Managerial Accounting
Authors: Charles T. Horngren, Walter T. Harrison Jr., M. Suzanne Oliver
1st Edition
0558241050, 978-0558241056
