A transaction involving the cash purchase of equipment will decrease one asset account and increase another asset account.

Name: A transaction involving the cash purchase of equipment will decrease one asset account and increase another asset account.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a company makes a cash purchase of equipment, their cash account decreases while their equipment account increases. This decreases one asset account (cash) and increases another asset account (equipment).

A Transaction Involving the Cash Purchase of Equipment Will Decrease