In January Mark Purchases New Furniture Worth $1750 for His

Multiple Choice

In January Mark purchases new furniture worth $1750 for his consulting office. The furniture is purchased on credit. The effect of this transaction on the accounting equation is?

A) Increase in the asset furniture $1750; increase in the liability accounts payable $1750.
B) Increase in the asset furniture $1750; decrease in the asset accounts receivable $1750.
C) Increase in the asset furniture $1750; increase in equity $1750.
D) Increase in the asset furniture $1750; increase in the asset accounts receivable $1750.