The Entry to Record the Initial Borrowing of Cash by Issuing

question 98

Multiple Choice

The entry to record the initial borrowing of cash by issuing a promissory note will include a debit to ________ and a credit to ________.

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

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Definitions:

Opportunity Cost

Skipping over the possibility of gain from multiple options by deciding on a single one.

Opportunity Cost

The cost of choosing one option over alternative uses of resources or opportunities.

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of currency.

Government Policies

Government policies are the actions and strategies that governments implement to achieve specific objectives, including economic stability, growth, and social welfare.