A Company Borrowed $80,000 from a Bank by Signing a Long-Term

question 166

Multiple Choice

A company borrowed $80,000 from a bank by signing a long-term note payable. The journal the transaction would be recorded in is the:

• A) Sales journal.
• B) Purchases journal.
• C) General journal.
• D) Cash disbursements journal.
• E) Cash receipts journal.

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Definitions:

Jointly Liable

A legal term indicating that two or more parties are equally responsible for the fulfillment of a liability or debt.

UPA

stands for Uniform Partnership Act, which is a set of laws adopted by some states in the United States to govern the formation, operation, and dissolution of partnerships.

RUPA

The Revised Uniform Partnership Act, which is a set of laws aiming to govern the operation of partnerships within the United States.

Limited Liability Partnership (LLP)

A partnership in which some or all partners have limited liabilities, protecting them from personal responsibility for the debts of the business.