Camper Van Company purchased equipment for $2,600 cash. As a result of this event,
A) stockholders' equity decreased by $2,600.
B) total assets increased by $2,600.
C) total assets remained unchanged.
D) stockholders' equity decreased and total assets increased by $2,600.

Question

Quizplus · Accepted Answer

The purchase of equipment for cash results in one asset (cash) decreasing and another asset (equipment) increasing by the same amount, leaving total assets unchanged.

Camper Van Company Purchased Equipment for $2,600 Cash