Q. If Office Equipment is purchased for cash, what effect will this transaction have on the financial position of the company?
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(A)
There is no change in the Assets, Liabilities and Owners‘ Equity
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(B)
There is a decrease in Assets, increase in Liabilities and no change in Owners‘ Equity
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(C)
There is a decrease in Assets, no change in Liabilities and a decrease in Owners‘ Equity
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(D)
There is an increase in Assets, decrease in Liabilities and no change in Owners‘ Equity
✅ Correct Answer: (A)
There is no change in the Assets, Liabilities and Owners‘ Equity