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A transaction caused a $15,000 decrease in both assets and total liabilities. This transaction could have been _____?
A transaction caused a $15,000 decrease in both assets and total liabilities. This transaction could have been _____?
Repayment of a $15,000 bank loan.
Purchase of a delivery truck for $15,000 on credit.
An asset with a cost of $15,000 was destroyed by fire.
None of these.
Explanation
Repaying a loan decreases
assets
(cash) and
liabilities
(loan payable)
by the same amount.
Other options involve either
increasing liabilities or affecting only assets
, not both.