Ask Question
6 April, 18:46

Purchasing office equipment on account has what impact on the accounting equation? A. Stockholders' equity decreases and assets increase. B. Liabilities increase and assets increase. C. Assets decrease and liabilities decrease. D. Assets increase and stockholders' equity increases

+4
Answers (1)
  1. 6 April, 18:59
    0
    B) Liabilities increase and assets increase.

    Explanation:

    Purchasing office equipment on account results in following journal entry.

    Office Equipment (Debit)

    Payable (Credit)

    Above entry increases assets and liabilities. Above entry does not impact stockholders' equity. Following is the equation of stockholders' equity

    Stockholders equity = Assets - liabilities.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Purchasing office equipment on account has what impact on the accounting equation? A. Stockholders' equity decreases and assets increase. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers