If a Company Borrows Money to Purchase Equipment

question 50

Multiple Choice

If a company borrows money to purchase equipment:

• A) one asset increases and another asset decreases.
• B) an asset increases and a liability increases.
• C) an asset decreases and a liability decreases.
• D) an asset increases and shareholders' equity increases.

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Definitions:

Personal Database

A database designed for use by a single person on a standalone computer, aimed at managing personal information or tasks.

Relational Database

A type of database that structures data as collections of tables that are related to each other through unique identifiers.

Spreadsheet

A computer application for organization, analysis, and storage of data in tabular form, often featuring calculation, graphing tools, and pivot tables.

Communication

The process of transferring information from one entity to another through various means, including verbal, non-verbal, written, and electronic methods.