A purchase of an asset on account
A) increases cash.
B) decreases owner's equity.
C) increases assets.
D) decreases expenses.

Question

Quizplus · Accepted Answer

A purchase of an asset on account is a transaction that increases the overall value of the company's assets. The asset is obtained without requiring an immediate cash outflow or reducing owner's equity. Therefore, the correct answer is C, as there is an increase in the total assets of the company.

A Purchase of an Asset on Account