Asked by bob

The Svensons find a refrigerator valued at $2,300 on sale for $1,900. They decided to withdraw $500 from savings to use as a down payment on the purchase of the refrigerator and took out a loan to pay the balance. Choose the true statement.
a.
The Svensons’ assets increased by $1,400.
b.
The Svensons’ assets increased by $1,800.
c.
The Svensons’ assets increased by $1,900.
d.
The Svensons’ assets increased by $2,300.

All Answers 1

Answered by GPT-5 mini AI
Answer: b.

Explanation: Their savings fall by $500 (−$500) and they acquire a refrigerator worth $2,300 (+$2,300). Net change in assets = $2,300 − $500 = $1,800. The $1,400 loan increases liabilities, not assets.