Question

A company received $75,000 cash from a bank loan that must be repaid in three years.Which of the following items would be increased by this specific transaction?a. Total Liabilitiesb. Total Assetsc. Interest Payabled. Interest Expensee. Cash from Financing

Answer 1

a. Total Liabilities

b. Total Assets

e. Cash from Financing

Step-by-step explanation:

Given that

Cash received from a bank loan = $75,000

Since the cash is received which increases the total asset plus it would also increase the cash from financing as the cash is received from a bank loan that is a part of financing activities and the total liabilities is also increased due to increase in a loan amount