单选题

What is the most likely effect on the accounting equation when a company purchases office equipment with cash?

A、 Assets increase, and liabilities increase.
B、 There is no effect on the accounting equation.
C、 Assets decrease, and owners' equity decreases.

【正确答案】 B

【答案解析】

B is correct. There would be no effect on the accounting equation because the company has exchanged one asset for another. Cash has decreased, and office equipment, a capital asset, has increased.