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Which of the Following Changes Describes the Purchase of $4,000

Question 3

Multiple Choice

Which of the following changes describes the purchase of $4,000 of equipment financed by the issuance of a long-term note payable?


A) Assets and shareholders' equity increase by $4,000.
B) Assets and shareholders' equity decrease by $4,000.
C) Assets and liabilities decrease by $4,000.
D) Assets and liabilities increase by $4,000.

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