When a business borrows money from a bank,the immediate effect is an increase in total assets and a decrease in liabilities or owners' equity.
Correct Answer:
Verified
Q12: A transaction that causes an increase in
Q13: A business entity is regarded as separate
Q14: The payment of a liability causes an
Q15: The sale of additional shares of capital
Q16: Assets need not always have physical characteristics
Q18: The going concern principle assumes that the
Q19: Total assets plus total liabilities must equal
Q20: Any business event that might affect the
Q21: Which of the following is not a
Q22: The accounting principle that assumes that a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents