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goldfiish [28.3K]
2 years ago
11

When a company lends cash to a customer who signs a promissory note: total assets decrease when the lending transaction occurs,

but increase when the amount borrowed by the customer is repaid. total assets increase when the lending transaction occurs and revenues increase when the amount borrowed by the customer is repaid. total assets increase and liabilities increase when the lending transaction occurs. total assets and net income do not change when the lending transaction occurs?
Business
1 answer:
d1i1m1o1n [39]2 years ago
8 0
The correct option is this: TOTAL ASSET DECREASES WHEN THE LENDING TRANSACTION OCCUR BUT INCREASE WHEN THE AMOUNT BORROWED BY THE CUSTOMER IS REPAID.
When a loan is given out, the asset account will be debited while the cash account is credited. This means that, at the point of giving the loan, the value of one's asset has decrease. Asset value will increase when the loan is paid.
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6 0
2 years ago
In its first month of operation, Sunland Company purchased 350 units of inventory for $10, then 450 units for $11, and finally 3
valina [46]

Answer:

$740

Explanation:

The computation of phantom profit is shown below:-

According to FIFO,

Closing Stock = (390 × $12) + ( 40 × $11)

= $4,680 + $440

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According to LIFO

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3 years ago
TB MC Qu. 4-58 Randall Company manufactures products to ... Randall Company manufactures products to customer specifications. A
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Answer:

Cost of goods manufactured= $838,000

Explanation:

Giving the following information:

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December 31:

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Work in process $45,000

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Answer:

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