Waterworld Boat Shop purchased a truck for ($ 12,000), making a down payment of ($ 5,000) cash
Question:
Waterworld Boat Shop purchased a truck for \(\$ 12,000\), making a down payment of \(\$ 5,000\) cash and signing a \(\$ 7,000\) note payable due in 60 days. As a result of this transaction:
a. Total assets increased by \(\$ 12,000\).
b. Total liabilities increased by \(\$ 7,000\).
c. From the viewpoint of a short-term creditor, this transaction makes the business more liquid.
d. This transaction had no immediate effect on the owners' equity in the business.
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Related Book For
Financial Accounting
ISBN: 9780077328702
15th Edition
Authors: Jan Williams, Sue Haka, Mark Bettner, Joseph Carcello
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