Purchased merchandise (perpetual),by issuing a note,would have which effect on the categories?
A)Total assets would be decreased.
B)Total liabilities would be increased.
C)Owner's equity would be decreased.
D)None of these answers is correct.

Question

Quizplus · Accepted Answer

Since a note is a liability, issuing a note to purchase merchandise would increase the total liabilities.

Purchased Merchandise (Perpetual),by Issuing a Note,would Have Which Effect on the Categories