12. The company recently obtained a loan from a bank, what is the effect on assets and liabilities? 13. Charlie owns a company called KJ associates and he purchases goods on credit from his personal funds. What is the effect on assets and liabilities? 14. The company pays its creditors by cheque, what is the effect on assets and liabilities 15. Which of the following is true about the double entry system? a) Each transaction should be entered into 2 accounts in the ledger b) Each transaction involves 2 person/parties c) Each transaction involves a debt entry and a corresponding credit entry in the ledger d) The total debits should be equal to the total credits 16. Which of the following branches of accounting is concerned primarily with external reporting or communicating the results of economic activities to parties outside the firm? a) Managerial Accounting b) Financial Accounting