If a company purchased equipment by borrowing money, the accounting equation would show a(n)

Question

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When a company purchases equipment by borrowing money, there is a simultaneous increase in assets (due to the acquisition of new equipment) and an increase in liabilities (due to the borrowing of funds to finance the purchase). Therefore, the accounting equation would show an increase in assets and an increase in liabilities.

If a Company Purchased Equipment by Borrowing Money, the Accounting