Billington Corp

question 187

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

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