If money is borrowed from the bank on a long-term loan,the accountant:
A) debits cash and debits long-term bank loan.
B) debits long-term bank loan and credits cash.
C) debits cash and credits long-term bank loan.
D) does none of the above.

Question

Quizplus · Accepted Answer

When money is borrowed from the bank on a long-term loan, the accountant debits cash because the company's cash balance increases. They credit the long-term bank loan because this represents an increase in the company's liabilities.

If Money Is Borrowed from the Bank on a Long-Term