Consider the transactions listed. Match them to the financial statement effects listed
-Repay bank loan
A) Increase assets and increase liabilities
B) Decrease liabilities and decrease assets
C) Decrease assets and decrease equity
D) Decrease assets and increase assets

Question

Quizplus · Accepted Answer

Repaying a bank loan decreases liabilities because the amount owed to the bank is reduced. It also decreases assets, specifically cash, because cash is used to repay the loan.

Consider the Transactions Listed