The purchase of a building by signing a note payable would:
A)increase owner's equity.
B)increase total liabilities.
C)decrease owner's equity.
D)decrease total assets.

Question

Quizplus · Accepted Answer

Purchasing a building by signing a note payable increases total liabilities because it adds a new obligation to pay in the future, without immediately affecting the owner's equity or total assets.

The Purchase of a Building by Signing a Note Payable