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Borrowing cash from the bank would have what effect on the accounting equation? a. Liabilities decrease and stockholders' equity increases. b. Liabilities increase and stockholders' equity decreases. c. Assets increase and liabilities increase. d. Assets increase and stockholders' equity increases.

Respuesta :

Answer:

C) Assets Increase and liabilities increase.

Explanation:

The Assets increase as a result of an inflow of cash as a current asset. Meaning there is an increase of cash. The liabilities increase as a result of a present loan or borrowing from the bank which is added to liabilities as an obligation.

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