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 are correct.

Question

Quizplus · Accepted Answer

When a business purchases equipment with a 40% down payment, it would result in Equipment increasing and Cash decreasing due to the payment made. The remaining balance would be recorded as Accounts Payable, therefore increasing this account.

Which of the Following Would Result If a Business Purchased