When Equipment Is Purchased on Credit

question 36

Multiple Choice

When equipment is purchased on credit,

• A) assets and liabilities increase.
• B) assets increase and liabilities decrease.
• C) assets and owner's equity increase.
• D) assets and expenses increase.

---

Definitions:

Diabetes Mellitus

A disorder caused by insulin deficiency.

Pancreatitis

An inflammation of the pancreas, often caused by gallstones or excessive alcohol consumption, leading to abdominal pain.

Appendicitis

Inflammation of the appendix, a small pouch attached to the large intestine, which can become a medical emergency if not treated.

Type 2 Diabetes

A chronic condition characterized by insulin resistance or deficiency, leading to elevated glucose levels in the blood.