Which of the following increases liabilities but not assets? a. Taking out a loan to buy a new car b. Taking out a loan to go on vacation c. Using a credit card to buy a computer d. Paying off a student loan Please select the best answer from the choices provided

To determine which option increases liabilities but not assets, let's analyze each choice: a. **Taking out a loan to buy a new car**: This increases liabilities (the loan) and also increases assets (the car). b. **Taking out a loan to go on vacation**: This increases liabilities (the loan) but does not increase assets, as a vacation does not result in a tangible asset. c. **Using a credit card to buy a computer**: This increases liabilities (the credit card debt) and also increases assets (the computer). d. **Paying off a student loan**: This decreases liabilities (the student loan) and does not affect assets. From this analysis, the best answer is: **b. Taking out a loan to go on vacation**. This option increases liabilities without increasing assets.