The accounting equation for Woolsey Enterprises is as follows: Assets = Liabilit

Question

The accounting equation for Woolsey Enterprises is as follows: Assets = Liabilities + Stockholders' Equity $720,000 = $360,000 + $360,000 If the company now purchases a truck on account for $60,000, the accounting equation will change to: Select one: A. Assets Liabilities Stockholders' Equity $780,000 = $396,000 + $384,000 B. Assets Liabilities Stockholders' Equity $780,000 = $420,000 + $360,000 C. Assets Liabilities Stockholders' Equity $720,000 = $360,000 + $360,000 D. Assets Liabilities Stockholders' Equity $780,000 = $360,000 + $420,000

Explanation / Answer

given Assets = Liabilities + Stockholders'

Equity $720,000 = $360,000 + $360,000

company now purchases a truck on account for $60,000, the accounting equation will change to:

C. Assets Liabilities Stockholders' Equity $720,000 = $360,000 + $360,000

it wont change any information as truck account amount wont effect accounting equation

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