A Business Purchased a Motor Vehicle Worth $40 000,paying $15

Multiple Choice

A business purchased a motor vehicle worth $40 000,paying $15 000 cash and borrowing $25 000.The effect of this transaction on the accounting equation is:

A) increase the asset motor vehicles, decrease the asset cash, decrease the liability loan payable.
B) increase the asset motor vehicles, decrease the asset cash, increase the liability loan payable.
C) decrease the asset motor vehicles, increase the asset cash, decrease the liability loan payable.
D) increase the asset motor vehicles, increase the asset cash, decrease the liability loan payable.