mary took out a loan to buy a $30,000 boat but had $2,000 cash to put down.which of the following is true…

mary took out a loan to buy a $30,000 boat but had $2,000 cash to put down.which of the following is true? a. mary decreased both assets and liabilities. b. mary increased both assets and liabilities. c. mary decreased assets and increased liabilities. d. mary increased assets and decreased liabilities. please select the best answer from the choices provided a b c d

mary took out a loan to buy a $30,000 boat but had $2,000 cash to put down.which of the following is true? a. mary decreased both assets and liabilities. b. mary increased both assets and liabilities. c. mary decreased assets and increased liabilities. d. mary increased assets and decreased liabilities. please select the best answer from the choices provided a b c d

Answer

Brief Explanations:

When Mary buys the boat, she acquires an asset (the boat). Taking out a loan creates a liability (the amount she owes). So, she increases her assets (the boat) and increases her liabilities (the loan amount).

Answer:

B. Mary increased both assets and liabilities.