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

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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**.
**Purchase of Computer on Account** increases both assets and liabilities.

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

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