How does the purchase of equipment by signing a note affect the accounting equation?

A) assets increase; assets decrease
B) assets increase; liabilities decrease
C) assets increase; liabilities increase
D) assets increase; owner's equity increases

Note

A written agreement or promissory note where one party agrees to pay another under specified conditions, often used in reference to loans or debts.

Assets

Resources owned by a business or individual deemed to have economic value and expected to provide future benefits.

Liabilities

Financial obligations or debts a company owes to others, due to be paid in the future.