A Truck Is Purchased on Credit

question 109

Multiple Choice

A truck is purchased on credit.For this transaction,identify the effect on the accounting equation.

• A)Assets increase and liabilities increase.
• B)Assets increase and owners' equity increases.
• C)Liabilities increase and owners' equity decreases.
• D)Liabilities decrease and assets decrease.

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Definitions:

Nonpoint Sources

Pollution sources that are diffuse and do not have a single point of origin, such as runoff from agricultural land.

Sahara Desert

The largest hot desert in the world, located in North Africa, known for its vast expanses of sand dunes, gravel plains, and rocky plateaus.

Desertification

The process by which fertile land becomes desert, typically as a result of drought, deforestation, or inappropriate agriculture.

Sahel Region

A semi-arid region of Africa that stretches from the Atlantic Ocean to the Red Sea, lying between the Sahara Desert to the north and the Sudanian Savanna to the south.