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理解借贷原理:借款如何影响公司的资产负债
Borrowing $100 000 of cash from Pastoral National Bank would: Group of answer choices none of the above would occur. increase liabilities by a debit and increase cash by a debit. increase cash by a credit and increase notes payable by a debit. increase liabilities by a credit and increase cash by a debit. decrease cash by a debit and decrease notes payable by a credit.

Increase liabilities by a credit and increase cash by a debit.

When a company borrows $100,000 in cash from Pastoral National Bank, it records this transaction as an increase in its liabilities, specifically as a new liability called "Notes Payable." This increase in liabilities is recorded with a credit entry. At the same time, the company's cash balance increases, which is recorded with a debit entry. Therefore, the correct answer is:

Increase liabilities by a credit and increase cash by a debit.