Billington Corp

question 189

Multiple Choice

Billington Corp.borrows $80,000 cash from Second National Bank.How does this transaction affect the accounting equation for Billington?

• A)Assets would decrease $80,000 and liabilities would decrease $80,000.
• B)Assets would decrease $80,000 and equity would increase $80,000.
• C)Assets would increase $80,000 and equity would decrease $80,000.
• D)Assets would increase $80,000 and liabilities would increase $80,000.
• E)Liabilities would decrease $80,000 and equity would increase $80,000.

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Limited Class

A category with restrictions in terms of the number or type of members it can include, often used in legal contexts or when issuing securities.

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A system or process designed to identify fraudulent activities or transactions.

Ultramares Rule

The Ultramares rule is a legal doctrine relating to negligence, limiting the liability of auditors to third parties for financial report errors, except in cases of fraud or gross negligence.