Question

Does Svensons find a refrigerator value that $2300 on sale for $1900 they decided to withdraw $500 from savings to use as a down payment on the purchase of a refrigerator and took out a loan to pay the balance choose the true statement
A.The Svensons Assets increased by $1400
B.The Svensons Assets increased by $1800
C.The SvensonsI said to increase by $1900
D.The Svensons assets increased by $2300

Answer 1

Answer:

B.The Svensons Assets increased by $1800

Explanation:

The Svensons assets increased by $1,800 because even if they purchased the refrigerator for $1,900, the market value of the refrigerator is $2,300, so their assets initially increase by this amount.

However, they also withdraw $500 from their savings to pay for the refrigerator, meaning that this asset account is reduced by the same amount.

Thus, an initial increase of $2,300 minus a later decrease of $500 gives us a final $1,800 increase.