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:

African Involvement

The participation or role of African people or nations in various historical, social, or political events.

Exploration

Exploration refers to the act of searching or traveling for the purpose of discovery, especially in unfamiliar territories.

African Resistance

Efforts by African people to oppose or resist European colonization, slavery, and exploitation on the continent and abroad.

European Slave Traders

Individuals or groups from Europe involved in the capturing, purchasing, and selling of Africans for forced labor in the Americas from the 16th to the 19th centuries.