Friday, October 9, 2020

How many of these transactions increased the company's total liabilities?

Consider the following transactions:


Issued common stock for cash.

Purchased equipment by signing a note payable.

Provided services to customers on account.

Collected cash from customers on account.


How many of these transactions increased the company's total liabilities?


A) One.

B) Two.

C) Three.

D) Four.


Answer: A

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