A Business Repays the Amount Borrowed on a Note with Cash.Which

question 197

Multiple Choice

A business repays the amount borrowed on a note with cash.Which of the following accounts is debited?

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

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Definitions:

Revenues

The total amount of income generated by the sale of goods or services related to a company's primary operations.

FIFO

First-In, First-Out, an inventory valuation method where goods purchased or produced first are sold, used, or disposed of first.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ending with the net income or loss for the period.

Holding Gain

The increase in value of an asset held over a period, not realized until the asset is sold.