profile-img
Eduncle Asked an Mcq
March 2, 2020 5:01 pm

(a)    Total assets will increase by Rs. 12,000
(b)    Total liabilities will increase by Rs. 7,000    
(c)    This transactions will not have immediate effect on owner's equity in the business
(d)    From the point of view of short-term creditor, this transaction will make business more liquid
Choose the correct option : 

Choose Your Answer:
  • 0 Attempts
  • 0 Likes
  • 1 Comments
  • 0 Shares
  • Eduncle Best Answer

    As company has signed a note payable of Rs.7000 so this will increase the liability by Rs 7000. Also as it is a business transaction so it will not have immediate effect on owne...

    Show more
    Likes(0) Reply(0)