Final answer:
The claim is false; borrowing money from the bank increases an individual's or company's assets and liabilities, but is not classified as an asset source transaction in accounting. Banks regard loans as assets with income potential, and these can be traded on the secondary loan market.
Step-by-step explanation:
Borrowing money from the bank is falsely characterized as an asset source transaction. In accounting, an asset source transaction is one that increases both the assets and the liabilities/equity of a business. When a bank provides a loan to an individual or company, it is indeed creating an asset for itself in the form of a receivable while increasing its liabilities due to the deposited funds used to finance the loan. However, from the borrower's perspective, the loan represents an increase in assets (cash received) but also an increase in liabilities (the obligation to repay the loan).
Loans are a critical part of a bank's assets as banks charge fees and interest on these loans, which is a source of income. They are so valuable that there is a secondary loan market where they can be bought and sold. Similarly, bonds purchased by a bank, such as those issued by the U.S. government, also represent assets because these investments are expected to generate a stream of income. However, the act of borrowing itself is not an asset source transaction as it involves a commitment to pay back the borrowed funds with interest.
Thus, the claim that borrowing money from the bank counts as an asset source transaction does not hold true within the context of either the bank's or the borrower's balance sheet.