uestion $32($Mandatory$)(1$ point$)$

If a company purchases equipment costing $$4,000$ on credit, the effect on the accounting equation would be:

Equity increases $$4,000$ and liabilities decrease $$4,000.$

Assets increase $$4,000$ and liabilities decrease $$4,000.$

Equity decreases $$4,000$ and liabilities increase $$4,000.$

One asset increases $$4,000$ and another asset decreases $$4,000.$

Assets increase $$4,000$ and liabilities increase $$4,000.$