A Business Makes a Payment of $1,400 on a Note

question 147

Multiple Choice

A business makes a payment of $1,400 on a note payable.Which of the following journal entries would be recorded?

• A) Cash is credited and Notes Payable is debited for $1,400.
• B) Notes Payable is credited and Cash is debited for $1,400.
• C) Cash is credited and Financing Expense is debited for $1,400.
• D) Cash is debited and Financing Revenue is credited for $1,400.

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Definitions:

Noun Clause

A dependent clause that functions as a noun within a larger sentence, often starting with words like "that," "whom," or "where."

Restrictive

Pertains to a limiting or controlling condition or rule.

Nonrestrictive

Descriptive text that provides additional information but is not essential to the meaning of the sentence.

Carbonic Acid

A weak, unstable acid (H2CO3) formed in solution when carbon dioxide dissolves in water and participates in the carbonate buffer system in blood.