Which of the Following Changes Describes the Purchase of $4,000

question 109

Multiple Choice

Which of the following changes describes the purchase of $4,000 of equipment financed by the issuance of a long-term note payable?

• A)Assets and shareholders' equity increase by $4,000.
• B)Assets and shareholders' equity decrease by $4,000.
• C)Assets and liabilities decrease by $4,000.
• D)Assets and liabilities increase by $4,000.

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Definitions:

Inequality

A mathematical statement illustrating the relationship between two expressions that are not equal, using symbols such as <, >, ≤, or ≥.

Absolute Value

The distance of a number from zero on the number line, regardless of direction; denoted by |x|.

Equation

A mathematical declaration that affirms two expressions, usually containing variables, are equal.

Inequality

A mathematical statement that indicates the relationship of less than, greater than, less than or equal to, or greater than or equal to between two values.