The Purchase of an Asset on Credit

question 46

Multiple Choice

The purchase of an asset on credit

• A)increases assets and stockholders' equity.
• B)increases assets and liabilities.
• C)decreases assets and increases liabilities.
• D)leaves total assets unchanged.

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Definitions:

Online

Connected to or available through the internet or other digital network.

Attachment

The legal process of seizing a debtor's property to secure or satisfy a judgment.

Security Interest

A legal claim on collateral that gives a lender the right to property if a loan is not repaid.

Legal Sense

Pertains to understanding, awareness, or interpretation within the context of the law.