IBM Signs an Agreement to Lend One of Its Customers

question 128

Multiple Choice

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

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

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Definitions:

Ethical System

A structured set of moral principles that guide individuals or groups in making decisions about right and wrong.

Redesign

The process of designing something again or differently, often to improve its functionality or aesthetics.

Recall

The action of officially ordering the return of a product due to the discovery of safety issues or product defects.

Ethical System

A coherent set of moral principles, theories, or values that guide an individual's or group's behavior.