O-LevelAccountingPreparation of financial statements7707/11 · Oct/Nov 2015 · Q171 Mark
A trader took out a business bank loan of $5000 and also transferred $2000 to the business bank account from his own funds. How did these transactions affect the statement of financial position?
Ano effect | increase $5000 | increase $5000
Bincrease $2000 | increase $5000 | increase $2000
Cincrease $2000 | increase $5000 | increase $7000
Dincrease $7000 | no effect | increase $7000
✓ Correct answer
C: increase $2000 | increase $5000 | increase $7000
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