Billington Corp borrows $80,000 cash from Second National Bank. How does this transaction affect the accounting equation for Billington?
A. Assets would increase $80,000 and equity would decrease $80,000.
B. Assets would decrease $80,000 and equity would increase $80,000.
C. Liabilities would decrease $80,000 and equity would increase $80,000.
D. Assets would decrease $80,000 and liabilities would decrease $80,000.
E. Assets would increase $80,000 and liabilities would increase $80,000.
Answer: E
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