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Financial Forensics · Quiz 1 · 26 Oct 2025 · September 2025 term

Question 16: Which of the following properly describes the impact on …

Question 16

+1 markOne correct option

Which of the following properly describes the impact on the financial statements when a company borrows $20,000 from a local bank?

  1. A

    Net income increases $20,000.

  2. B

    Assets decrease $20,000.

  3. C

    Stockholders' equity increases $20,000.

  4. D

    Liabilities increase $20,000.

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Correct answer

  • D

    Liabilities increase $20,000.

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Question 16 of 25 in the IIT Madras BS Financial Forensics (Financial Forensics) Quiz 1 paper sat on 26 Oct 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 26 Oct 2025). It carries 1 mark.

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