LeBlanc Corp

question 81

Multiple Choice

LeBlanc Corp.signed a document promising to pay First Bank a specified amount of money at a definite future date at a certain interest rate.This transaction is reported as a(n)

• A)note receivable on LeBlanc's books and a note payable on First Bank's books.
• B)note payable on LeBlanc's books and a note receivable on First Bank's books.
• C)account receivable on LeBlanc's books and an account payable on First Bank's books.
• D)account payable on LeBlanc's books and an account receivable on First Bank's books.

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Definitions:

Sales Discount

A reduction in the price of goods or services offered to customers, typically to prompt early payment or bulk purchases.

Contra Revenue Account

An account used to record reductions in gross revenue, such as discounts, returns, and allowances.

Operating Expense

Refers to the costs associated with the day-to-day functions of a business, excluding costs related to production.

Credit Terms

Conditions under which a seller will extend credit to a buyer, including repayment periods and interest rates.