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Payment is made for machinery purchases previously on credit. what effect does this transaction have on the accounting equation?

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When machinery that was previously purchased on credit is paid for, both liabilities and assets on the balance sheet increase by the same amount.

A balance sheet, also referred to as a statement of financial position or a statement of financial condition in financial accounting, is an overview of the financial standing of an individual or organization, including a sole proprietorship, a business partnership, a corporation, a private limited company, or other entities like the government or not-for-profit organizations.

A balance sheet is frequently referred to as a "snapshot of a company's financial condition". Of the four fundamental financial statements, the balance sheet is the only one that only relates to a certain moment in a company's fiscal year.

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