Question

Slim purchases equipment with cash. The accounts affected are:____.

A. Equipment and accounts payable.
B. Cash and equipment.
C. Cash and revenues.
D. Cash and inventory.

Answer 1

Option B, Cash and equipment, is the right answer.

Step-by-step explanation:

Option “B” is correct because the purchase of equipment shows that the Equipment account debit and cash account credit. Here the debit of equipment account shows that the equipment has been increased and the cash account credit means the cash has been decreased. Therefore, both accounts, cash, and equipment will be affected. The equipment account will be increased while the cash account will be decreased.