When a Business Borrows Money from a Bank,the Immediate Effect

question 90

True/False

When a business borrows money from a bank,the immediate effect is an increase in total assets and a decrease in liabilities or owners' equity.

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Definitions:

Negative Consequences

Unfavorable or harmful outcomes resulting from actions or decisions.

Deterrence

A theory or strategy aimed at preventing unwanted actions by instilling fear of the consequences.

Acceptable Behavior

Actions or conduct that are deemed appropriate, ethical, and conform to societal or specified standards.

Unacceptable Behavior

Actions or conduct deemed inappropriate or offensive according to societal norms or specific regulations.