Which account would be impacted if the company takes on a new liability?

When a company takes on a new liability, it directly affects the liabilities section of the balance sheet. Liabilities represent obligations that the company is required to settle in the future, typically through the transfer of economic resources, such as cash. By incurring a new liability, for instance through a loan or an accounts payable, the amount in the liabilities account increases, indicating a growing obligation the company must fulfill.

The other options—assets, equity, and expenses—are not directly impacted by the assumption of a new liability in the same manner. While the increase in liabilities may also lead to a potential increase in assets (if the liability was taken on to purchase assets) or an eventual impact on equity (as net income could be affected by any interest expenses), the most direct and immediate impact is on the liabilities account itself. Thus, recognizing that the specific question pertains to which account is impacted at that moment clearly highlights liabilities as the correct answer.