On August 1, Amy Company Borrowed $40,000 from Another Company

question 113

Multiple Choice

On August 1, Amy Company borrowed $40,000 from another company on a 6%, one-year note. The journal entry that Amy would record on August 1 would include which of the following?

• A)A debit to Notes Receivable for $40,000.
• B)A credit to Cash for $40,000.
• C)A credit to Notes Payable for $40,000.
• D)A debit to Interest Expense for $2,400.

---

Definitions:

Theoretical Perspective

A basic set of assumptions that guides research and theory in social sciences, providing a specific viewpoint or lens for interpretation.

Research Topic

A specific subject or area of investigation selected for detailed study, often forming the basis of a research project or paper.

Level Of Education

Indicates the highest degree or stage of formal learning a person has completed, encompassing various educational milestones from basic schooling to advanced university degrees.

Theoretical Perspective

A set of assumptions about reality that inform the questions we ask and the kinds of answers we arrive at as part of the scientific process.