A Business Repays the Amount Borrowed on a Note Payable

question 119

Multiple Choice

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

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

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Definitions:

ASP

Stands for Application Service Provider, a business providing computer-based services to customers over a network, such as access to a particular software application using a standard protocol.

ERP

Enterprise Resource Planning, an integrated management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions.

PaaS

Platform as a Service; a cloud computing model that provides a platform allowing customers to develop, run, and manage applications without dealing with the underlying infrastructure.

SaaS

Short for Software as a Service, it is a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over the internet.