The Journal Entry a Company Uses to Record the Issuance

question 78

Multiple Choice

The journal entry a company uses to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is

• A) debit Accounts Payable; credit Notes Payable
• B) debit Cash; credit Notes Payable
• C) debit Notes Payable; credit Cash
• D) debit Cash and Interest Expense; credit Notes Payable

---

Definitions:

Inaccurately

Describes information, data, or results that are not correct or precise, often leading to errors in interpretation or conclusions.

Overall Impression

A general assessment or perception of something, typically considering all aspects or a comprehensive view.

Rating Scale

A tool used to capture responses or opinions by providing a set of categories that quantify characteristics, feelings, or attitudes.

Autobiography

A procedure that asks an individual to write subjective information that stands out in his or her life. In some ways, the information highlighted in an individual’s autobiography is a type of projective test of his or her unconscious mind. A type of record and personal document.