If a company purchases equipment costing $4,500 on credit,the effect on the accounting equation would be:
A) Assets increase $4,500 and liabilities decrease $4,500.
B) Equity decreases $4,500 and liabilities increase $4,500.
C) Liabilities decrease $4,500 and assets increase $4,500.
D) Assets increase $4,500 and liabilities increase $4,500.
E) Equity increases $4,500 and liabilities decrease $4,500.
Correct Answer:
Verified
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