Chapter 2, Problem 4QC

Thorpe Corporation purchases a new delivery truck and signs a note payable at the truck dealership for the total cost. The impact of this transaction on Thorpe Corporation

1. a. increases assets and decreases stockholders’ equity.
2. b. decreases assets and increases liabilities.
3. c. increases assets and increases liabilities.
4. d. increases assets and increases stockholders’ equity.