Question: A business borrows $10,000 from the bank. What effect does this transaction have on the accounting equation? Group of answer choices: 1) A $10,000 decrease

A business borrows $10,000 from the bank. What effect does this transaction have on the accounting equation?

Group of answer choices:

1) A $10,000 decrease in the asset, Bank, and a $10,000 decrease in the liability, Bank Loan

2) A $10,000 increase in the asset, Bank, and a $10,000 increase in the liability, Bank Loan

3) A $10,000 increase in the asset, Bank, and a $10,000 decrease in the liability, Bank Loan

4) A $10,000 decrease in the asset, Bank, and a $10,000 increase in the liability, Bank Loan

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