Shlomtza's Sheets has its checking account plus a line of credit with Superficially Friendly Bank. It draws from its credit line and uses the funds to add to its inventory. What are the results of thee actions?
a) Shlomtza's total assets and total liabilities both increase
b) Shlomtza's total assets increase and total liabilities decease
c) Shlomtza's total assets and total liabilities both decease
d) Shlomtza's total assets decrease and total liabilities increase
e) Shlomtza's total assets increase and total liabilities are unchanged
f) Shlomtza's total assets and total liabilities are both unchanged
Answer: a) Shlomtza's total assets and total liabilities both increase
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