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  #1 (permalink)
: What are the effects on the accounting equation from the purchase of a short-term investment?

Assets and stockholders' equity decrease.

No effects--assets increase and decrease by the same amount.

Assets and liabilities decrease.

Stockholders' equity decreases and liabilities increase.

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  #2 (permalink)
: No effects--assets increase and decrease by the same amount.
..e.g. use $100 cash to purchase $100 T-bill
you are "trading" one asset for another...cash for short-term asset
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