If a Company Purchases Equipment for $65,000 by Issuing a Note

question 105

Multiple Choice

If a company purchases equipment for $65,000 by issuing a note payable:

• A)Total assets will increase by $65,000.
• B)Total assets will decrease by $65,000.
• C)Total assets will remain the same.
• D)The company's total owners' equity will decrease.

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Definitions:

Vascular Dementia

A decline in thinking skills caused by conditions that block or reduce blood flow to various regions of the brain, impairing cognitive functions.

Parkinson Disease

A neurodegenerative disorder that affects predominately dopamine-producing neurons in a specific area of the brain, causing symptoms like tremors and movement difficulties.

Hemiplegia

A condition resulting in paralysis on one side of the body, often due to stroke or brain injury.

Dysphasia

A language disorder marked by impairment in the ability to speak, read, write, or comprehend spoken or written language, often due to brain injury or disease.