I used my house, which I fully paid, as collateral to take out a loan to borrow money from a bank. In this transaction, a financial asset was destroyed O a real asset was created O a new financial asset was created a financial asset was traded for a real asset

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter3: The Double-entry Framework
Section: Chapter Questions
Problem 2CE: LO3 Complete the following questions using either debit or credit: (a) The asset account Supplies is...
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Question 3
I used my house, which I fully paid, as collateral to take out a loan to borrow money from a bank. In this transaction,
O a financial asset was destroyed
O a real asset was created
O a new financial asset was created
O a financial asset was traded for a real asset
Transcribed Image Text:Question 3 I used my house, which I fully paid, as collateral to take out a loan to borrow money from a bank. In this transaction, O a financial asset was destroyed O a real asset was created O a new financial asset was created O a financial asset was traded for a real asset
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