IBM Signs an Agreement to Lend One of Its Customers

question 25

Multiple Choice

IBM signs an agreement to lend one of its customers $200,000 to be repaid in one year at 5.5% interest.IBM would record this loan as:

• A)notes payable.
• B)accounts receivable.
• C)notes receivable.
• D)unearned revenue.

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Definitions:

Lactic Acid

A substance produced in the muscles during intense exercise, often associated with muscle fatigue and soreness.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Glycolysis

A metabolic process that breaks down glucose to produce energy, happening in the cytoplasm of cells.

Hydrolysis

A chemical reaction in which water is used to break bonds in molecules, such as the digestion of nutrients.