Borrowing from the Bank in Order to Acquire Computer Equipment

question 159

Short Answer

Borrowing from the bank in order to acquire computer equipment for $1,500 has the effect of increasing both assets and ____________________.

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Definitions:

Total Capital

The sum of a company's equity capital and debt, representing the total funds that a company can use for operations.

Total Assets

The sum of all current and non-current assets on a company's balance sheet, representing everything the company owns that has value.

Open Account

It generally refers to a commercial credit line that allows for the purchase of goods and services without immediate payment, payable at a later date.

Down Payment

An initial payment made when purchasing a good or service, typically a percentage of the total price, with the remainder due later.