Water world Boat Shop purchased a truck for $12,000, making a down payment of $5,000 cash, and signing a $7,000 note payable due in 60 days. As a result of this transaction:
A) Total assets increased by $12,000.
B) Total liabilities increased by $7,000.
C) From the viewpoint of a short-term creditor, this transaction makes the business more solvent.
D) This transaction had no immediate effect upon the owner's equity in the business.
Correct Answer:
Verified
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