Answer :
When a company purchases a piece of machinery, the machinery becomes the company's A. asset.
What is an asset?
An asset is a resource owned or controlled by a business or an economic entity, which produces value or more resources.
Assets can be classified into three classes, and they generally fall into the following categories:
- Current
- Non-current
- Physical
- Intangible
- Operating
- Non-operating.
Thus, the machinery does not become a liability, equity, or capital but an asset.
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