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

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Definitions:

Unsolicited Sales Message

A communication or promotion sent to potential customers without their prior request or consent.

Abstract Nouns

Words that name intangible things, such as qualities, concepts, or conditions, rather than concrete objects.

Concrete Nouns

Words that name tangible objects or substances that can be seen, touched, heard, smelled, or tasted.

Passive Verbs

Verbs that indicate an action being done to the subject, often leading to less direct or weaker statements.