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Iacofano Pizza Place Acquired Equipment Costing $11,000 on Account

Question 54

Multiple Choice

Iacofano Pizza Place acquired equipment costing $11,000 on account.The effect of this transaction on Iacofano Pizza Place would be to


A) increase equipment by $11,000 and decrease capital by $11,000.
B) increase equipment by $11,000 and increase capital by $11,000.
C) increase equipment by $11,000 and increase accounts payable by $11,000.
D) increase equipment by $11,000 and decrease accounts payable by $11,000.
E) No transaction is recorded since no cash has been paid.

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