Elwood Corporation borrows $750,000 from its bank, to purchase inventory and equipment. Which of the following statements is true of this transaction?
a. the amount of total assets will remain unchanged
b. liabilities will decrease
c. liabilities will decrease by $750,000
d. note payable will increase by $750,000
e. cash will decrease by $750,000
Answer: d. note payable will increase by $750,000
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Two products with identical purchase prices may have very different product costs
Indicate whether the statement is true or false
Martin Manufacturing has implemented several programs to improve its productivity. They have asked you to evaluate the firm's productivity by comparing this year's performance with last year's
The following data are available: Last Year This Year Output 10,500 units 12,100 units Labor Hours 12,000 13,200 Utilities $7,600 $8,250 Capital $83,000 $88,000 Has Martin Manufacturing improved its productivity during the past year?