A Business Makes a Payment of $1,400 on a Note

question 147

Multiple Choice

A business makes a payment of $1,400 on a note payable.Which of the following journal entries would be recorded?

• A) Cash is credited and Notes Payable is debited for $1,400.
• B) Notes Payable is credited and Cash is debited for $1,400.
• C) Cash is credited and Financing Expense is debited for $1,400.
• D) Cash is debited and Financing Revenue is credited for $1,400.

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Definitions:

Youngest

Refers to the most recently formed or newest layer or feature in a geological context.

Layers Deposited

Stratified accumulations of materials such as sediments, volcanic ash, or ice, that settle and build up over time.

Youngest Layer

the most recent geological layer, usually found at the top of a sequence in stratigraphy.

Oldest Layer

Pertains to the earliest or first-formed layer of sediment or rock in a sequence, indicating the earliest period of deposition.