For EFG Co. ,the transaction "Purchase of store equipment with a note payable" would

Name: For EFG Co. ,the transaction "Purchase of store equipment with a note payable" would
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The transaction of purchasing store equipment will increase the total assets of EFG Co. as the store equipment will be recorded as an asset on the balance sheet. The note payable will be recorded as a liability, but this does not offset the increase in assets, therefore, option A is the best choice.