Amy just purchased $12,000 of stock.She paid $9,000 in cash and borrowed the remaining $3,000 needed to pay for this purchase.If you constructed a balance sheet reflecting this transaction,the total assets would be:

Question

Quizplus · Accepted Answer

The total assets on the balance sheet would be the amount of the stock purchased, which is $12,000. The fact that $3,000 was borrowed does not affect the total assets, as the borrowed amount is a liability, not an asset. Thus, the correct answer is C.

Amy Just Purchased $12,000 of Stock