Which of the following is correct if a company purchases equipment for $70,000 cash?
A)Total assets will increase by $70,000.
B)Total assets will decrease by $70,000.
C)Total assets will remain the same.
D)The company's total owners' equity will decrease.

Question

Quizplus · Accepted Answer

When a company purchases equipment for cash, it exchanges one asset (cash) for another asset (equipment). Therefore, total assets remain the same.

Which of the Following Is Correct If a Company Purchases