Kal's Vegan Restaurant, with total assets of $80,000, borrows $25,000 from the bank. Which of the following is a TRUE statement upon borrowing the money?
A) Total assets are now $105,000.
B) Total assets are now $80,000.
C) Total assets are now $25,000.
D) Total assets are now $55,000.

Question

Quizplus · Accepted Answer

Borrowing $25,000 increases the total assets to $105,000 ($80,000 + $25,000).

Kal's Vegan Restaurant, with Total Assets of $80,000, Borrows $25,000