Friday, October 9, 2020

Borrowing cash from the bank would have what effect on the accounting equation?

Borrowing cash from the bank would have what effect on the accounting equation?


A) Assets increase and stockholders' equity increases.

B) Assets increase and liabilities increase.

C) Liabilities increase and stockholders' equity decreases.

D) Liabilities decrease and stockholders' equity increases.


Answer: B

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