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Question 4 A newly formed company obtains $5,000 by borrowing from a bank. Which of the following is the appropriate analysis of this transaction? a.
Question 4 A newly formed company obtains $5,000 by borrowing from a bank. Which of the following is the appropriate analysis of this transaction? a. Assets increase by $5,000 and liabilities increase by $5,000. b. Cash increases by $5,000 and common stock increases by $5,000. C. Cash increases by $5,000 and liabilities increase by $5,000. O d. Cash increases by $5,000 and Loan payable increases by $5,000
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