Question 28 Which Transaction Below will Increase Assets and Increase Liabilities? Provide Service to a Customer for Cash Purchase of Computer on Account Payment of Monthly Rent with a check Purchase of Truck with Cash Pexhange for Common Stock Pa

To determine which transaction will increase both assets and liabilities, let's analyze each option step by step: 1. **Provide Service to a Customer for Cash**: - Assets (Cash) increase, but liabilities do not change. - **Effect**: Increase Assets, No Change in Liabilities. 2. **Purchase of Computer on Account**: - Assets (Computer) increase, and Liabilities (Accounts Payable) also increase because the purchase is made on credit. - **Effect**: Increase Assets, Increase Liabilities. 3. **Payment of Monthly Rent with a check**: - Assets (Cash) decrease, and there is no change in liabilities. - **Effect**: Decrease Assets, No Change in Liabilities. 4. **Purchase of Truck with Cash**: - Assets (Truck) increase, but Assets (Cash) decrease. Liabilities do not change. - **Effect**: No Net Change in Assets, No Change in Liabilities. 5. **Exchange for Common Stock**: - Assets (Cash or other assets) increase, and there is no change in liabilities. - **Effect**: Increase Assets, No Change in Liabilities. From the analysis, the only transaction that increases both assets and liabilities is: **Purchase of Computer on Account**.