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The Assets will increase...
Answer1. Increase ......................
Increase ................................
assets will increse & liability will increase also cash.......dr to bank loan..
When a company receives cash from a bank loan, cash would increase since more money comes into the business. Hence, cash is an asset, Asset would increase. The word receives cash is a give a way in that the cash increases leading to Asset increase. On the other hand, the liability of the company would increase in that they acquired a debt that needs to be paid within a time frame. Hence the accounting entry is Dr cash (Increase), Cr Loan (increase)
1.) Increase. The Increase in Asset is due to the received cash
the answer is #1. Increase
My answer is1. Increase.
When the company receives cash from bank loan, there is an increase of both cash and loan. The entry would be debit to cash and credit to loans.
cash from bank loan means cash inflow in the co.so.cash from bank loan increase assets along with increasing loan to the co.
Option "1" Assets increase.
