Question

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. Please select the best answer from the choices provided A B C D.

Answer 1

Assets are the resources owned by any individual or organization. Svenson's assets increased by $1,400.

What is an asset?

An asset is any resource that is been owned by a company, organization, or individual.

Given to us

The original price of the refrigerator is $2,300.

The Market price of the refrigerator is $1,900.

Svensons' paid $500

As it is given to us that the Market price of the refrigerator is $1,400 and as the Svenson's has bought the refrigerator, therefore, this resource(refrigerator) is now owned by the Svenson.

We know that the down payment made is also made from our assets(cash). therefore, the assets increased by $1,400($1900-$500)only.

Thus, the Svensons’ assets increased by $1,400.

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