Palmer corporation borrows $40,000 cash by signing a note with the bank. which of the following statements correctly shows the effect of this transaction on the accounting equation? multiple choice
a. assets will increase by $40,000, liabilities will increase by $40,000, and stockholders' equity will remain unchanged
b. assets will increase by $40,000, liabilities will decrease by $40,000, and stockholders' equity will remain unchanged
c. assets will increase by $40,000, liabilities will remain unchanged, and stockholders' equity will increase by $40,000
d. assets will increase by $40,000, liabilities will remain unchanged, and stockholders' equity will decrease by $40,000