Which of the following is a result of equipment purchased with cash?
A)Total assets decrease.
B)Current assets do not change.
C)Current assets increase.
D)Stockholders' equity does not change.

Question

Quizplus · Accepted Answer

Purchasing equipment with cash affects the composition of the company's assets by decreasing cash (a current asset) and increasing equipment (a non-current asset), but the total assets remain the same. Stockholders' equity does not change because this transaction involves only asset accounts.

Which of the Following Is a Result of Equipment Purchased