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.
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.
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