Which of the Following Properly Describes the Impact on the Financial

question 125

Multiple Choice

Which of the following properly describes the impact on the financial statements when a company borrows $20,000 from a local bank?

• A)Net income increases $20,000.
• B)Assets decrease $20,000.
• C)Stockholders' equity increases $20,000.
• D)Liabilities increase $20,000.

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Definitions:

Electromyogram

A diagnostic test that measures the electrical activity of muscles in response to stimulation.

Functional MRI

Magnetic resonance imaging uses a magnet to obtain scans of structures of the brain. Functional magnetic resonance imaging (fMRI) provides information on the amount of activity in different brain structures.

Electrocardiogram

A medical test that records the electrical activity of the heart to detect heart problems.

Cognitive Task

A task designed to assess or engage cognitive functions such as memory, attention, or problem-solving.