TB 02-62 Your company pays back $2 million on a loan ...Your company pays back $2 million on a loan it had received earlier from a bank. How does this transaction affect the accounting equation?Multiple ChoiceAssets are unchanged, liabilities increase by $2 million, contributed capital decreases by $2 million.CEAssets decrease by $2 million, liabilities decrease by $2 million, shareholders' equity is unchanged.Assets decrease by $2 million, liabilities are unchanged, contributed capital decreases by $2 million.Assets are unchanged, liabilities and shareholders' equity both increase by $2 million.

Name: TB 02-62 Your company pays back $2 million on a loan ...Your company
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Description: TB 02-62 Your company pays back $2 million on a loan ...Your company pays back $2 million on a loan it had received earlier from a bank. How does this transaction affect the accounting equation?Multiple ChoiceAssets are unchanged, liabilities increa

Accounting equation: As per dual aspect concept every transaction has a dual aspect. For every debit…

Business

Accounting

Your company pays back $2 million on a loan it had received earlier from a bank. How does this transaction affect the accounting equation? Multiple Choice O Assets are unchanged, liabilities increase by $2 million, contributed capital decreases by $2 million. Assets decrease by $2 million, liabilities decrease by $2 million, shareholders' equity is unchanged. Assets decrease by $2 million, liabilities are unchanged, contributed capital decreases by $2 million. Assets are unchanged, liabilities and shareholders' equity both increase by $2 million.

Your company pays back $2 million on a loan it had received earlier from a bank. How does this transaction affect the accounting equation? Multiple Choice O Assets are unchanged, liabilities increase by $2 million, contributed capital decreases by $2 million. Assets decrease by $2 million, liabilities decrease by $2 million, shareholders' equity is unchanged. Assets decrease by $2 million, liabilities are unchanged, contributed capital decreases by $2 million. Assets are unchanged, liabilities and shareholders' equity both increase by $2 million.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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