Gomez Service Company Paid Its First Installment on a Note

question 11

Multiple Choice

Gomez Service Company paid its first installment on a note payable in the amount of $2,000.How will this transaction affect the accounting equation?

• A)increase liabilities Notes Payable and decrease assets Cash
• B)decrease assets Cash and decrease stockholders' equity Note Payable Expense
• C)decrease assets Cash and decrease assets Notes Receivable
• D)decrease assets Cash and decrease liabilities Notes Payable

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Definitions:

Stock-option Plans

An employee benefit scheme that grants the right to buy company stock at a discount or a specified fixed price, often used to attract and retain employees.

Firm-level Performance

Firm-level performance is the measure of a company's performance outcomes and achievements, such as profitability, revenue growth, or market share, evaluating its success in the industry.

Individual-level Performance

A measurement of an employee's work output and achievements as evaluated independently, rather than as part of a team.

Faith-based Businesses

Businesses that are operated based on religious principles and values, often aiming to have a positive impact on society alongside financial goals.