The Purchase of an Asset on Credit

question 81

Multiple Choice

The purchase of an asset on credit

• A) increases assets and shareholders' equity.
• B) increases assets and liabilities.
• C) decreases assets and increases liabilities.
• D) has no effect on total assets.

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Definitions:

Strabismus

A condition that results in a lack of parallel visual axes of the eyes; commonly called crossed eyes.

Presbyopia

A condition associated with aging in which the eye exhibits a progressively diminished ability to focus on near objects.

Myopia

A condition that occurs when light entering the eye is focused in front of the retina; commonly called nearsightedness.

Glaucoma

A condition in which too much pressure is created in the eye by excessive aqueous humor. This excess pressure can lead to permanent damage of the optic nerves, resulting in blindness.