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 decrease by $75,000 and expenses decrease by $75,000.
B. Liabilities increase by $75,000 and expenses decrease by $75,000.
C. Assets increase by $75,000 and expenses decrease by $75,000.
D. Assets increase by $75,000 and expenses increase by $75,000.
E. Assets increase by $75,000 and liabilities increase by $75,000.


Answer: E

Business

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