The Entry to Record the Proceeds Upon Issuing an Interest-Bearing

question 170

Multiple Choice

The entry to record the proceeds upon issuing an interest-bearing note is

• A) Interest Expense Cash
• Notes Payable
• B) Cash Notes Payable
• C) Notes Payable Cash
• D) Cash Notes Payable
• Interest Payable

---

Definitions:

Long-Term Debt

Debt that is due for repayment more than one year into the future.

Equity Securities

Financial assets representing ownership interest in a company, such as stocks, that provide voting rights and potential dividends.

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives).

Asset

Any resource owned or controlled by a business or an individual with the expectation that it will provide future economic benefits.