Carl cornfield purchases new equipment. After reducing the cash line, where else would carl put an entry for this purchase?

Cash assets

Equipment assets

Other assets (includes receivables)

Liabilities

Owners equity

Choose best answer.

The correct answer is:

Equipment assets.

Explanation:

After this equipment purchase, we would need to subtract the amount of the purchase from the cash line, to represent the money spent on the purchase.

Additionally, however, we would need to add the value of the equipment to the equipment assets of the business. The value of the equipment increases the amount of the equipment assets of the business.