Multiple Choice
Suppose you borrow $1,000 to purchase a car.Which of the following correctly represents the changes in your personal balance sheet after the bank lends the money but before you spend it?
A) assets: loan,+$1,000; liabilities and net worth: checking deposit,+$1,000
B) assets: loan,-$1,000,checking deposit,+$1,000; liabilities and net worth: no change
C) assets: loan,+$1,000,checking deposit,-$1,000; liabilities and net worth: no change
D) assets: checking deposit,+$1,000; liabilities and net worth: loan,+$1,000
E) assets: checking deposit,+$1,000; liabilities and net worth: loan,-$1,000
Correct Answer:
Verified
Correct Answer:
Verified
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