Kirby,IncBorrows $16 Million from Its Bank

question 138

Multiple Choice

Kirby,Inc.borrows $16 million from its bank.It then uses this money to buy equipment.How do these two transactions affect the company's accounting equation?

• A)Assets and liabilities both increase by $16 million.
• B)Assets increase by $8 million and liabilities decrease by $8 million.
• C)Assets increase by $16 million,liabilities increase by $8 million,and stockholders' equity increases by $8 million.
• D)Assets remain unchanged and liabilities increase by $16 million.

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Definitions:

Predicate Offense

A crime that is a component of a larger crime or is required to be convicted for a charge, often used in the context of legal proceedings regarding complex fraud or organized crime.

Foreign Corrupt Practices Act

A U.S. law that prohibits companies and their employees from bribing foreign officials to gain a business advantage.

Fifth Amendment

An amendment to the U.S. Constitution protecting individuals from self-incrimination, double jeopardy, and ensuring due process of law.

Self-Incrimination

The act of implicating oneself in a crime or sharing information that could lead to one's own criminal prosecution.