The Journal Entry Used to Record the Issuance of an Interest-Bearing

question 42

Multiple Choice

The journal entry used to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is

• A) debit Accounts Payable; credit Notes Payable
• B) debit Cash; credit Notes Payable
• C) debit Notes Payable; credit Cash
• D) debit Cash and Interest Expense; credit Notes Payable

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Definitions:

Lesser Omentum

A double layer of peritoneum that extends from the liver to the lesser curvature of the stomach and the beginning of the duodenum.

Greater Omentum

A large apron-like fold of visceral peritoneum that hangs down from the stomach.

Stomach

A muscular, hollow organ in the gastrointestinal tract that plays a major role in digestion by breaking down food with acid and enzymes.

Liver

A vital organ that performs essential functions such as detoxification, protein synthesis, and the production of biochemicals necessary for digestion.