Which of the following would result if a business purchased equipment with a 40% down payment and the rest on account?

A) equipment would increase and cash would decrease

B) accounts payable would increase

C) since the equipment has not been paid in full, there is nothing to record

D) both a and b

Question

Edith Mckee

26 August, 02:57

+2

Answers (2)

Know the Answer?

Amaris Winters · Answer 1

The answer is A and B. As one affects the other.

Patricia Hughes · Answer 2

I just took this. The answer is D) Both A and B

Which of the following would result if a business purchased equipment with a 40% down payment and the rest on account?A) equipment would increase and cash would decreaseB) accounts payable would increaseC) since the equipment has not been paid in full, there is nothing to recordD) both a and b