Alpha Company has assets of $640,000, liabilities of $270,000, and equity of $370,000. It buys office equipment on credit for $95,000. What would be the effects of this transaction on the accounting equation?
A. Assets decrease by $95,000 and expenses decrease by $95,000.
B. Liabilities increase by $95,000 and expenses decrease by $95,000.
C. Assets increase by $95,000 and liabilities increase by $95,000.
D. Assets increase by $95,000 and expenses increase by $95,000.
E. Assets increase by $95,000 and expenses decrease by $95,000.
Answer: C
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Creditors' equities is another term for liabilities
Indicate whether the statement is true or false
Paolo Rodrigues is a sales rep employed by Montano Travel Services. He is preparing to demonstrate a very complex computerized reservation system at a meeting with a corporate client
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Which of the following statements is true regarding the concept of the time value of money?
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