For each of the following, explain a transaction that will have the following stated effects on the accounting equation elements. A) Increase one asset, decrease one asset, and increase a liability. B) Increase an asset and increase stockholders' equity. C) Decrease an asset and decrease a liability. D) Increase an asset and increase a liability. E) Increase one asset and decrease another asset


(Answers may vary, but here are a few examples.)
A) Buy equipment with a cash down payment with the remainder financed by a note payable.

B) Issued common stock in exchange for cash. Provided services on account (or for cash).

C) Pay cash to reduce accounts payable. Pay cash to reduce a note payable.

D) Purchase supplies on account. Purchase equipment and signed a note payable.

E) Receive cash from customers on account. Purchase supplies for cash.

Business

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Answer the following statement true (T) or false (F)

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