A Business Repays the Amount Borrowed on a Note Payable

question 120

Multiple Choice

A business repays the amount borrowed on a note payable by cash. Which of the following accounts will be credited?

• A)Accounts Payable
• B)Cash
• C)Notes Payable
• D)Notes Receivable

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Definitions:

Market Supply

The total amount of a specific good or service that is available to consumers in a market at current prices.

Increasing-cost Industry

An increasing-cost industry is one in which the entry of new firms raises the average costs of production, often due to limited resources or increasing prices for inputs.

Consumer Demand

The willingness and ability of consumers to purchase goods and services at different prices, influencing market dynamics and prices.

Market Price

The price of a good or service determined by supply and demand in a competitive market.