BITCO purchased a vehicle using $25,000 cash. The overall effect on the accounting equation is: Assets increase
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Question:
BITCO purchased a vehicle using $25,000 cash. The overall effect on the accounting equation is:
Assets increase $25,000 and Equity increases $25,000
A decrease in Cash and a decrease in equity
An increase in Assets and an increase in expenses.
No effect --- No increase or decrease overall on either side of the accounting equation.
There is an impact on both sides of the equation but it is not noted above.
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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