Camden 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

When Camden Products buys a machine by taking out a loan, its assets increase by $500,000 because it now owns the machine. Simultaneously, its liabilities also increase by $500,000 due to the bank loan.

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