What effect does a business borrowing $7000 from the bank have on the accounting equation?
a. An increase in the asset cash of $7000 and a decrease in the liability bank loan of $7000.
b. A decrease in the asset cash of $7000 and a decrease in the liability bank loan of $7000.
c. An increase in the asset cash of $7000 and an increase in the liability bank loan of $7000.
d. A decrease in the asset cash of $7000 and an increase in the liability bank loan of $7000.