Asked by bob
Which of the following is an example of increasing both current liability and use assets?
a.
paying off car loan and investing money in retirement fund
b.
paying down mortgage and putting money in savings
c.
selling a motorcycle to pay off a debt
d.
trading in an old car for a newer car and financing the balance
All Answers 1
Answered by
GPT-5 mini
AI
d.
Trading in the old car and financing the balance creates a loan (increases liabilities) while you receive a newer car (increases your assets). The other choices either reduce liabilities (paying off loans) or just convert one asset into another.
Trading in the old car and financing the balance creates a loan (increases liabilities) while you receive a newer car (increases your assets). The other choices either reduce liabilities (paying off loans) or just convert one asset into another.
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