Question: What effect does a business borrowing $7000 from the bank have on the accounting equation? a. An increase in the asset cash of $7000 and

What effect does a business borrowing $7000 from the bank have on the accounting equation?
a. An increase in the asset cash of $7000 and a decrease in the liability bank loan of $7000.
b. A decrease in the asset cash of $7000 and a decrease in the liability bank loan of $7000.
c. An increase in the asset cash of $7000 and an increase in the liability bank loan of $7000.
d. A decrease in the asset cash of $7000 and an increase in the liability bank loan of $7000.

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