Quick Quiz A business bought a machine for $18,000. It paid $7,000… — F3 Financial Accounting — TG.ME

🧠 Quick Quiz A business bought a machine for $18,000. It paid $7,000 immediately by bank and will pay the rest next month. What is the effect on the accounting equation? A) Assets +$18,000; Liabilities +$18,000 B) Assets +$11,000; Liabilities +$11,000 C) Assets +$18,000; Liabilities +$11,000 D) Assets +$11,000; Liabilities +$18,000 Think it through before scrolling... 👇 . . . . . ✅ Answer: B Assets +$11,000; Liabilities +$11,000 The machine increases non-current assets by $18,000, but bank decreases by $7,000 because part of the payment was made immediately. So the net increase in assets is $11,000. The unpaid balance of $11,000 creates a liability. This is a classic accounting equation question: always think about the net effect on assets, not just one side of the transaction. ✈️@ACCA_F3_FA✈️