Question: A company borrowed TL80,000 from a bank. What is the effect of this transaction on the accounting equation? a. Liabilities increase and equity decreases. b.

A company borrowed TL80,000 from a bank. What is the effect of this transaction on the accounting equation?

a. Liabilities increase and equity decreases.

b. Equity decreases and assets decrease.

c. Assets increase and equity increases. 

d. Assets increase and liabilities increase.

e. Assets decrease and liabilities decrease.

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