Pat purchased $8,000 of new electronic equipment for her BJ Company on open account. The effect on the basic accounting equation was to:

A) increase Cash $8,000 and increase Equipment $8,000.
B) increase Equipment $8,000 and increase Accounts Payable $8,000.
C) decrease Cash $8,000 and increase Accounts Payable $8,000.
D) decrease Cash $8,000 and increase Equipment $8,000.

Basic Accounting Equation

Assets = Liabilities + Owner’s Equity.

Electronic Equipment

Electronic equipment encompasses devices or systems that use electrical power to perform a wide range of functions, including computing, communication, and entertainment.

Accounts Payable

Refers to the amount a company owes to suppliers or vendors for goods and services received but not yet paid for.