Jayce Products buys a $500,000 machine by taking out a bank loan.The company's assets will _____ by $500,000 while its liabilities will _?____?? by $500,000.
A)rise;rise
B)fall;fall
C)rise;fall
D)fall;rise

Question

Quizplus · Accepted Answer

The company's assets will rise by $500,000 because the machine is an asset. Its liabilities will also rise by $500,000 because the bank loan is a liability.

Jayce Products Buys a $500,000 Machine by Taking Out a Bank