A business purchases equipment for cash in the amount of $8,000. Which of the following occurs?

Name: A business purchases equipment for cash in the amount of $8,000. Which of the following occurs?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a business purchases equipment for cash, the equipment account (an asset) increases, requiring a debit entry for $8,000. Simultaneously, the cash account (also an asset) decreases by the same amount, requiring a credit entry for $8,000. Thus, both A and C occur.

A Business Purchases Equipment for Cash in the Amount of $8,000