Tandem Company Borrowed $32,000 of Cash from a Local Bank

question 61

Multiple Choice

Tandem Company borrowed $32,000 of cash from a local bank.Which of the following choices accurately reflects how this event affects the accounting equation?
$\begin{array}{|c|c|c|c|c|c|c|c|}\hline & \text { Assets } & = & \text { Liabilities } & + & \begin{array}{c}\text { Common } \\\text { Stock }\end{array} & + & \begin{array}{c}\text { Retained } \\\text { Earnings }\end{array} \\\hline \text { A } & \text { NA } & = & 32,000 & + & \text { NA } & + & 32,000 \\\hline \mathrm{B} . & 32,000 & = & \mathrm{NA} & + & 32,000 & + & \mathrm{NA} \\\hline \mathrm{C} . & 32,000 & = & \mathrm{NA} & + & \mathrm{NA} & + & 32,000 \\\hline \mathrm{D} . & 32,000 & = & 32,000 & + & \mathrm{NA} & + & \mathrm{NA} \\\hline\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Stereotype

A widely held but oversimplified belief or generalization about a particular group or type of person.

Mental Shortcut

Cognitive strategies or heuristics that simplify decision making by reducing complex problem-solving to simpler rules of thumb.

Rapid Mental Processing

The ability to quickly assimilate, analyze, and act upon information mentally.

Errors

Mistakes or deviations from accuracy and correctness in action, calculation, opinion, or judgment.