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:

Most Real

This term is likely to refer to the philosophical notion of ultimate reality or truth, the most fundamental and true nature of existence as opposed to appearances or perceptions.

Plato

An ancient Greek philosopher, student of Socrates, and teacher of Aristotle, known for his contributions to philosophy, mathematics, and the concept of forms.

Saint Augustine

An early Christian theologian and philosopher whose writings influenced the development of Western Christianity and Western philosophy, especially regarding concepts of original sin and divine grace.

Aristotle

An ancient Greek philosopher and scientist, whose works cover a wide range of subjects and form the basis of Western philosophy.