Which of the Following Transactions Would Increase One Asset and Decrease

question 73

Multiple Choice

Which of the following transactions would increase one asset and decrease another asset?

• A)purchasing equipment for cash
• B)borrowing money from a bank
• C)performing a service and receiving the cash immediately
• D)purchasing office supplies on account

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Definitions:

Dollar Diplomacy

A foreign policy initiative under President William Howard Taft that promoted the spread of American influence through loans and economic investments from American banks.

Banana Plantations

Large-scale agricultural operations focused on the cultivation of bananas, notable in Central and South America for their historical ties to colonialism and labor exploitation.

Military Intervention

The act of a nation or group of nations using military force in another country to influence its affairs.

Liberal Internationalism

Woodrow Wilson’s foreign policy theory, which rested on the idea that economic and political freedom went hand in hand, and encouraged American intervention abroad in order to secure these freedoms globally.