Didwania Company Had a Transaction That Caused a $40,000 Decrease

Multiple Choice

Didwania Company had a transaction that caused a $40,000 decrease in both assets and liabilities. This transaction could have been a(n) :

A) Purchase of office equipment for $54,000, paying $14,000 cash and issuing a note payable for the balance
B) Investment of $40,000 cash in the business by the stockholders
C) Purchase of office equipment for $40,000 cash
D) Repayment of a $40,000 bank loan