A bank loan approved for the business that has been paid into the bank account will have the following impact on the accounting equation. Group of answer choices Increase equity and increase asset Decrease an asset and decrease a liability Decrease an asset and decrease stockholders’ equity Increase an asset and increase a liability
A bank loan approved for the business that has been paid into the bank account will have the following impact on the accounting equation. Group of answer choices Increase equity and increase asset Decrease an asset and decrease a liability Decrease an asset and decrease stockholders’ equity Increase an asset and increase a liability
Chapter1: Financial Statements And Business Decisions
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A bank loan approved for the business that has been paid into the bank account will have the following impact on the
Group of answer choices
Increase equity and increase asset
Decrease an asset and decrease a liability
Decrease an asset and decrease stockholders’ equity
Increase an asset and increase a liability
Expert Solution
Step 1
Accounting Equation is the primary principle of accounting and also an important element in the balance sheet. As it depicts the company's total assets are equal to the sum of the company's liabilities and shareholders' equity. It is a basically a base for double-entry accounting system.
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