On 1 January 2022, Mechanical Services bought a toolbox and tools on credit from Motor World for R8 000. The effect of this transaction on the accounting equation of Mechanical Services will be as follows:

Question

Accepted Answer

Assets will increase with R8 000 and liabilities will increase with R8 000.

Answer

Assets will decrease with R8 000 and liabilities will decrease with R8 000.

Answer

Assets will decrease with R8 000 and liabilities will increase with R8 000.

Answer

Assets will increase with R8 000 and liabilities will decrease with R8 000.

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On 1 January 2022, Mechanical Services bought a toolbox and tools on credit from...

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