If a company borrows 1000 in longterm debt liabilities which

If a company borrows 1,000 in long-term debt (liabilities), which of the following must be true?

Long-term liabilities increased by 1,000.

Current liabilities increased by 1,000.

Current assets decreased by 1,000.

Long-term liabilities decreased by 1,000.

Solution

The correct option is :Long-term liabilities increased by 1,000.

Long term liablities would be credited on account of borrowings made and this would increase long term liabilities.If such long term liability is borrowed through cash,current assets would also increase etc.