Borrowing money from the bank by signing a note payable would:

Name: Borrowing money from the bank by signing a note payable would:
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Borrowing money from the bank by signing a note payable would not have any effect on shareholders' equity. Shareholders' equity represents the residual interest in the assets of a company after deducting its liabilities. Borrowing money would increase the liability side of the balance sheet but would not affect the equity side.

Borrowing Money from the Bank by Signing a Note Payable