Question

The company repays the bank that lent money to the company.

(Increase, Decrease, No effect)
a) Assets
b) Liabilities
c) Owner's Equity

Answer 1

The company repays the bank that lent money to the company will decrease liabilities.

Step-by-step explanation:

The company repays the bank that lent money to the company will decrease liabilities. Liabilities represent the company's obligations to repay debts or other financial obligations. When the company repays the bank, it reduces the amount it owes, resulting in a decrease in liabilities.