Which of the Following Transactions Would Increase an Asset and Increase

question 141

Multiple Choice

Which of the following transactions would increase an asset and increase a liability?

• A)payment of an account payable
• B)borrowing money from a bank
• C)an owner investment of cash into the business
• D)purchasing office equipment for cash

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Definitions:

Contracting Parties

Entities entering into a contractual agreement, thereby accepting mutual obligations.

Criminal Prosecution

The process by which a person is charged, tried, and possibly convicted of committing a crime, undertaken by the state.

Duress

The use of threats or force to compel someone to act against their will or to enter into a contract.

Unilateral Mistake

A situation where only one party to a contract is mistaken about the terms or subject-matter contained in that contract.