Borrowing Money from the Bank by Signing a Note Payable

question 111

Multiple Choice

Borrowing money from the bank by signing a note payable would:

• A) decrease liabilities
• B) increase shareholders' equity
• C) increase net income
• D) have no effect on shareholders' equity

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Definitions:

Dominant Tenement

Property that has the advantage of an easement.

Servient Tenement

The property subject to an easement.

Right-of-Way

The legal right, established by usage or grant, to pass along a specific route through grounds or property belonging to another.

Positive Covenant

A clause in a contract that requires a party to take a specific action or comply with certain conditions.