A Company Went to the Bank and Borrowed $10,000 on a Long-Term

question 113

Multiple Choice

A company went to the bank and borrowed $10,000 on a long-term note.In transaction analysis,how does this transaction affect the accounting equation?

• A)Add $10,000 to Cash account and add $10,000 to Accounts Payable account.
• B)Add $10,000 to Cash account and add $10,000 to Notes Payable account.
• C)Add $10,000 to Cash account and add $10,000 to Retained Earnings account.
• D)Add $10,000 to Accounts Receivable account and add $10,000 to Accounts Payable account.

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