Notes Payable That Have Been Repaid in Full Should Be

question 20

Multiple Choice

Notes payable that have been repaid in full should be

• A)destroyed so that they will not be paid again inadvertently.
• B)cancelled and destroyed.
• C)cancelled and returned to the creditor.
• D)cancelled and retained by an authorized company official.

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Definitions:

Predistribution Plan

A strategic plan detailing how assets or profits will be allocated or distributed before the actual distribution takes place.

Profits and Losses

The financial gains or losses resulting from business operations after accounting for revenues and expenses.

Capital Account Balances

The amounts recorded in the equity section of a company's balance sheet that represent the owners' stakes.

Partnership Loan

A loan taken by a partnership, which is a business entity where two or more individuals operate for the common goal of making profit.