Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 35 - No. 10)
What is the effect on the accounting equation (Assets = Liabilities + Equity) of the bank loan received on Sept 3?
Increases assets and decreases liabilities.
Increases assets and increases liabilities.
Decreases assets and increases equity.
Decreases assets and decreases liabilities.
Explanation
Receiving a bank loan increases the cash (asset) and also increases the liability (bank loan).
Comments (0)
