When a business purchases a $25,000 computer system by writing a check, the business's balance sheet will:
A. Show an increase in assets and liabilities of $25,000.
B. Only show an increase in assets of $25,000.
C. Only show an increase in liabilities of $25,000.
D. None of the above.
Answer:D
When a business purchases a $25,000 computer system by writing a check, the business's balance sheet will:
A. Show an increase in assets and liabilities of $25,000. B. Only show an increase in assets of $25,000. C. Only show an increase in liabilities of $25,000. D. None of the above.