The accounting equation tells us that Assets = Li hilities + Owner's Equity. Owners need to decide whether to use debt or equity when they need to acquire assets. - What is the advantage/risk of using debt for expansion of assets versus issuing new shares of Common Stock? - If the company needed $1 million for expansion what would be the difference between borrowing from a bank or issuing a bond to the public? Which would you recommend, borrowing the note payable from the bank or issuing the bond payable to the public and why? .