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:

Effectiveness Criteria

Standards or metrics used to assess the success or performance of an employee, project, or organization in achieving its goals.

Reward System

A set of mechanisms for distributing both tangible and intangible returns as part of an employment relationship.

Compensation System

A framework used by organizations to plan, implement, and manage how employees are paid for their work, including salaries, bonuses, and benefits.

Base Pay

The initial rate of compensation an employee receives before any bonuses, benefits, or additional pay is added.