Final answer:
The equation representing the decrease in the person's bank account after buying 25 game tokens at $1.25 each is obtained by multiplying the number of tokens (25) by the cost per token ($1.25), resulting in a total cost of $31.25.
Step-by-step explanation:
The three elements of the accounting equation are assets, liabilities, and shareholders' equity. The formula is straightforward: A company's total assets are equal to its liabilities plus its shareholders' equity. To determine the effect on the person's bank account after buying 25 game tokens that cost $1.25 each, we must multiply the number of tokens by the cost per token.
The equation representing this situation is: Bank Account decrease = Number of tokens × Cost per token. Plugging in the values we have: Bank Account decrease = 25 × $1.25. Mathematically, this would translate to the following calculation for the decrease in the person's bank account: Total cost = 25 × $1.25 = $31.25. Therefore, the person's bank account would decrease by $31.25 after the purchase.