Question: The plant nursery borrows $ 1 5 0 , 0 0 0 from a local bank. The plant nursery uses the loan to buy a
The plantnurseryborrows $ from a local bank. The plant nursery uses the loan to buya warehouse building.
What is the effect on the plantnurserysaccounting equation?
The assets stay the same and liabilities increase in the accounting equation by $
The assets decrease and liabilities increase in the accounting equation by $
The assets increase and liabilities decrease in the accounting equation by $
The assets and liabilities of the accounting equation both increase by $
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