Multiple Choice
A business borrows $10 000 from the bank.What effect does this transaction have on the accounting equation?
A) An increase in the asset cash of $10 000 and an increase in the liability bank loan of $10 000.
B) An increase in the asset cash of $10 000 and a decrease in the liability bank loan of $10 000.
C) A decrease in the asset cash of $10 000 and a decrease in the liability bank loan of $10 000.
D) A decrease in the asset cash of $10 000 and an increase in the liability bank loan of $10 000.
Correct Answer:
Verified
Correct Answer:
Verified
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