A Business Repays the Amount Borrowed on a Note Payable

question 128

Multiple Choice

A business repays the amount borrowed on a note payable.Which account is debited?

• A) Cash
• B) Equipment
• C) Notes payable
• D) Notes receivable

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Definitions:

Woodward's Classification

A framework developed by Joan Woodward that categorizes firms into groups based on their level of technology and how it impacts organizational structure.

Process Technology

The combination of tools, equipment, methodologies, and techniques used to produce goods or services.

Continuous-production

A method of production where materials are continuously processed or produced 24/7, typical in industries like chemicals and power plants, aiming for a high level of productivity.

Downsizing

A strategy involving reducing the size of a company's workforce to improve its efficiency and reduce costs.