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

question 30

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 equity will decrease.

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Definitions:

Coercing

Using force or threats to compel someone to do something against their will.

Prejudice

Preconceived opinion or judgment about an individual or group that is not based on reason or actual experience, often involving negative or stereotypical beliefs.

Mixed-race

Pertaining to an individual or group of people who are of ancestry from two or more racial backgrounds.

Promoted

Refers to the act of being elevated to a higher rank or position within an organization.