Alpha Company has assets of $600,000,liabilities of $250,000,and equity of $350,000.It buys office equipment on credit for $75,000.What would be the effects of this transaction on the accounting equation?
A)Assets increase by $75,000 and expenses increase by $75,000.
B)Assets increase by $75,000 and expenses decrease by $75,000.
C)Liabilities increase by $75,000 and expenses decrease by $75,000.
D)Assets decrease by $75,000 and expenses decrease by $75,000.
E)Assets increase by $75,000 and liabilities increase by $75,000.

Question

Quizplus · Accepted Answer

When Alpha Company buys office equipment on credit, its assets increase by $75,000 due to the new equipment, and its liabilities also increase by $75,000 because it is purchased on credit.

Alpha Company Has Assets of $600,000,liabilities of $250,000,and Equity of $350,000.It