Deerpark Corporation recently borrowed $70,000 cash from its bank. Which of the following was unaffected by this transaction?

Name: Deerpark Corporation recently borrowed $70,000 cash from its bank. Which of the following was unaffected by this transaction?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Only equity was unaffected because although the company acquired a liability (the loan), it also received an equal amount of cash, which increased its assets. Therefore, the total equity (total assets - total liabilities) remains unchanged.

Deerpark Corporation Recently Borrowed $70,000 Cash from Its Bank