When a Company Borrows Money from the Bank,which Type of Account(s)is(are)increased

question 1

Multiple Choice

When a company borrows money from the bank,which type of account(s) is(are) increased?

• A)asset account only
• B)Retained Earnings only
• C)liability account only
• D)asset and liability accounts

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Definitions:

Checking Account

A type of bank account that allows for easy access to funds for daily transactions through checks, debit cards, or electronic means.

M1

A category of the money supply that includes all physical currency, demand deposits, traveler's checks, and other checkable deposits.

U.S. Treasury

The federal department responsible for managing government revenue, including producing currency, managing national accounts, and administering public finance.

Currency

A system of money in general use in a particular country for the exchange of goods and services.