Which of the following transactions would increase total assets? I. Borrowed cash on a note payable, $80,000
II. Provided services on account, $10,000
III. Received cash from a customer as payment on account, $8,000
IV. Received a utility bill, $1,200

Question

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Borrowing cash on a note payable (I) and providing services on account (II) both increase total assets. Receiving cash from a customer as payment on account (III) does not increase total assets as it is just an exchange of one asset (accounts receivable) for another (cash). Receiving a utility bill (IV) does not affect total assets immediately.

Which of the Following Transactions Would Increase Total Assets? I