The Entry to Record the Borrowing of Cash by Issuing

question 198

Multiple Choice

The entry to record the borrowing of cash by issuing a note was recorded with a debit to Cash and a credit to Notes Receivable.The effect of recording this entry causes:

• A)assets to be understated.
• B)liabilities to be overstated.
• C)stockholders' equity to be understated.
• D)stockholders' equity to be overstated.

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