if-a-company-records-a-400-debit-to-equipment-and-a-400-credit-to-cash-what-is-t

Question

If a company records a $400 debit to Equipment and a $400 credit to Cash, what is the impact on the accounting equation?

Accepted Answer

Assets remain unchanged.

Answer

Assets increase, and equity increases.

Answer

Assets decrease, and equity decreases.

Answer

Assets increase, and liabilities increase.

If a company records a \$400 debit to Equipment and a \$400 credit to Cash, what is the impact on the accounting equation?