When a company borrows cash from the bank:
A)total assets remain the same.
B)liabilities are increased.
C)retained earnings is decreased.
D)total liabilities remain the same.

Name: When a company borrows cash from the bank: A)total assets remain the same. B)liabilities are increased. C)retained earnings is decreased. D)total liabilities remain the same.
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Question

Quizplus · Accepted Answer

When a company borrows cash from the bank, its liabilities increase because it now has an obligation to repay the borrowed amount.

When a Company Borrows Cash from the Bank