Mary took out a loan to buy a $30,000 boat but had $2,000 cash to put down Which of the following is true?

a Mary decreased both assets and liabilities

Mary increased both assets and liabilities

c. Mary decreased assets and increased liabilities

d Mary increased assets and decreased liabilities

Question

Social Studies

Alex Quinn

7 November, 04:51

Mary took out a loan to buy a $30,000 boat but had $2,000 cash to put down Which of the following is true?

a Mary decreased both assets and liabilities

Mary increased both assets and liabilities

c. Mary decreased assets and increased liabilities

d Mary increased assets and decreased liabilities

+1

Answers (2)

Know the Answer?

Stephanie Dodson · Answer 1

Stephanie Dodson 7 November, 06:31

0

i think its D sorry if wrong

Levi Lowery · Answer 2

B. Mary increased both assets and liabilities

Explanation:

Mary increased asset because she registered the boat for 30,000 and decreased cash for 2,000. In total asset increased 28,000.

Also increased liabilities for 28,000, because of the loan.

The full record is: Debit Boat for 30,000, Credit Cash for 2,000 and Loan for 28,000.

Mary took out a loan to buy a $30,000 boat but had $2,000 cash to put down Which of the following is true?a Mary decreased both assets and liabilitiesMary increased both assets and liabilitiesc. Mary decreased assets and increased liabilitiesd Mary increased assets and decreased liabilities

Mary took out a loan to buy a $30,000 boat but had $2,000 cash to put down Which of the following is true?

a Mary decreased both assets and liabilities

Mary increased both assets and liabilities

c. Mary decreased assets and increased liabilities

d Mary increased assets and decreased liabilities