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Which of the following transactions increases total assets?

a.Collect cash from customer for services provided on account last month.
b.Provide services to customers on account.
c.Pay dividends to current stockholders.
d.Purchase supplies for cash.

1 Answer

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Final answer:

The transaction 'Provide services to customers on account' increases total assets; a rise in demand and supply in the financial market leads to more loans made and received.

Step-by-step explanation:

The transaction that increases total assets is 'Provide services to customers on account'. When services are provided on account, it means the client is billed for the services, resulting in an increase in assets (accounts receivable) without an immediate cash exchange.

Regarding changes in the financial market, both 'a rise in demand' and 'a rise in supply' will lead to an increase in the quantity of loans made and received. A rise in demand for loans means more borrowers are seeking financing, while a rise in supply indicates lenders are willing to offer more loans.

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