Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 44 - No. 29)
Which of the following correctly describes the impact of a cash purchase of equipment?
Debit equipment, credit bank
Debit equipment, credit cash
Debit cash, credit equipment
Debit bank, credit equipment
Explanation
The equipment asset account increases (debit), while the cash account decreases (credit) when equipment is purchased with cash.
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