A Transaction Caused a $60,000 Increase in Both Assets and Total

question 59

Multiple Choice

A transaction caused a $60,000 increase in both assets and total liabilities.This transaction could have been which of the following?

• A)Purchase for office equipment for $60,000 cash.
• B)Purchase of office equipment for $120,000,paying $60,000 cash and issuing a note payable for the balance.
• C)Repayment of a $60,000 bank loan.
• D)Investment of $60,000 cash in the business by the owner.

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Definitions:

Ativan

A prescription medication used to treat anxiety disorders, known generically as lorazepam.

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A therapeutic method used to reduce phobia or anxiety by gradually exposing the patient to the feared object or context without any danger.

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A type of psychotherapy that emphasizes the importance of thought patterns and beliefs in affecting mood and behavior.

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A neurological disorder characterized by involuntary, repetitive body movements, often resulting from long-term medication use.