Which of the Following Transactions Will Cause Both the Left

question 51

Multiple Choice

Which of the following transactions will cause both the left and right side of the equation to increase?

• A) We collect cash from a customer who owed us money
• B) We borrow money from the bank
• C) We pay a supplier for inventory we previously bought on account
• D) We purchase equipment for cash

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Definitions:

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Put Option

An economic arrangement that offers the holder a privilege, absent any mandate, to liquidate a specified quantum of a core asset at a stipulated price throughout a fixed duration.

Expiration

The point in time when a financial contract (e.g., option, futures contract) reaches its end date and is either executed or becomes void.

Dividend

Shareholders receive a payment from a corporation, commonly as a share of the company's profits.