Multiple Choice
What is the effect on the balance sheet when the business buys a car for $25,000, paying a deposit of $5,000 and promising to pay the balance within 60 days?
A) increase asset vehicle by $20,000; increase liability accounts payable by $20,000
B) increase asset vehicle by $25,000; decrease asset bank by $5,000; increase liability accounts payable by $20,000
C) increase asset vehicle by $5,000; decrease asset bank by $5,000
D) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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