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adelina 88 [10]
3 years ago
10

What would be the effect on the accounts if the business purchased equipment on account?

Business
1 answer:
Serjik [45]3 years ago
3 0

Answer:

A. An asset would be debited and a Liability credited.

Explanation:

Purchasing on account means buying on credit. The debts of the business increase. As a result,  liabilities increase.

Equipment is a business asset. Purchasing equipment increases assets.

In the double-entry accounting system, An increase in an asset is recorded by debiting the asset account. An increase in liabilities is captured by crediting the liabilities account.

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Answer:

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3 years ago
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Answer:

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