Which of the Following Transactions Would Cause an Increase in Both

question 74

Multiple Choice

Which of the following transactions would cause an increase in both assets and owners' equity?

• A)Investment of cash in the business by the owner.
• B)Sale of land for a price less than its cost.
• C)Borrowing money from a bank.
• D)Sale of land for cash at a price equal to its cost.

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Definitions:

Alternator

A machine used to generate AC by rotating conductors through a magnetic field.

Capacitance

The ability of a system to store an electrical charge per unit voltage, represented in farads.

Line Current

The current that flows through the conductors of an electrical distribution system or in any single conductor.

Inductance

A characteristic of an electrical conductor wherein an alteration in the current passing through it generates an electromotive force within the conductor and in nearby conductors due to mutual inductance.