A corporation purchased factory equipment using cash.Which of the following statements regarding this purchase is correct?

A) The cost of the factory equipment is an expense at the time of purchase.
B) The total assets will not change.
C) The total liabilities will increase.
D) The current stockholders' equity will decrease.

Factory Equipment

These are fixed assets used in the production process to manufacture goods, including machinery, tools, and vehicles.

Total Assets

Total assets represent the sum of everything of value owned by a company, including cash, investments, property, and equipment.

Current Stockholders' Equity

The total value of all shareholders' interests in a company, based on current financial statement data.