Borrowing cash from the bank causes assets to increase and liabilities to increase.

A) True

B) False

True

Explanation:

When cash is borrowed from a bank, assets and liabilities increase because the borrowed cash increases the account of lender to enable the fulfillment of conditions to increase income revenue (assets) as well as increase the amount payable back to the bank which is increased from the initial value borrowed due to the inclusion of interest rates (liabilities).

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