When a company buys equipment for $150,000 and pays for one third in cash and the other two thirds is financed by a note payable, which of the following are the effects on the accounting equation?
A. Total assets decrease $50,000.
B. Total liabilities increase $150,000.
C. Total liabilities decrease $50,000.
D. Total assets increase $100,000
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Home » Business » When a company buys equipment for $150,000 and pays for one third in cash and the other two thirds is financed by a note payable, which of the following are the effects on the accounting equation? A. Total assets decrease $50,000. B.