The Purchase of a Building by Signing a Note Payable

question 39

Multiple Choice

The purchase of a building by signing a note payable would:

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

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Definitions:

Supreme Court

The highest federal court in the United States, with the ultimate judicial authority to interpret and decide upon the constitutionality of laws.

Watergate Scandal

A major political scandal in the early 1970s involving the Nixon administration's attempt to cover up its involvement in a break-in at the Democratic National Committee headquarters.

Constitutional Power

The authority granted by a constitution, especially the United States Constitution, to the different branches of government or to specific governmental roles.

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