Sarah Borrowed $2,200 from Cassandra

question 97

Multiple Choice

Sarah borrowed $2,200 from Cassandra. Sarah promised in writing that she would repay the money to Cassandra on June 18, 201X. At the time of the loan, Sarah records the transaction as a(n) :

• A) Accounts Receivable.
• B) Accounts Payable.
• C) Note Payable.
• D) Note Receivable.

---

Definitions:

Allocated

Refers to the distribution or assignment of costs or resources to different accounts, projects, or periods.

Cost of Goods Sold

The total direct costs attributable to the production of the goods sold by a company, including materials and labor.

Indirect Expenses

Costs not directly tied to a product or service, like utilities and rent.

Departments

Departments refer to distinct areas or divisions within a business or organization, each handling specific tasks or responsibilities.