Which of the following transactions would increase total assets? I. Borrowed cash on a note payable, $80,000
II. Provided services on account, $10,000
III. Received cash from a customer as payment on account, $8,000
IV. Received a utility bill, $1,200
A)I and II
B)I and III
C)I, II, and III
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Borrowing cash on a note payable (I) increases cash (an asset) and providing services on account (II) increases accounts receivable (an asset). Receiving cash from a customer (III) does not increase total assets as it only changes the form of the asset from accounts receivable to cash. Receiving a utility bill (IV) does not affect assets.

Which of the Following Transactions Would Increase Total Assets? I