When a business purchases a $25,000 computer system by writing a check, the business's balance sheet will:

Name: When a business purchases a $25,000 computer system by writing a check, the business's balance sheet will:
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Question

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The purchase of a $25,000 computer system by writing a check decreases cash (an asset) by $25,000 but increases property, plant, and equipment (another asset category) by $25,000, leaving the total assets unchanged. Liabilities are not affected by this transaction.

When a Business Purchases a $25,000 Computer System by Writing