A Firm Borrows $4000 Cash from the Bank

question 19

Multiple Choice

A firm borrows $4000 cash from the bank.The transaction is recorded as:

• A)Debit Bank Loan $4000; credit Owner's capital $4000
• B)Debit Cash at bank $4000; credit Accounts Receivable $4000
• C)Debit Cash at bank $4000; credit Bank Loan $4000
• D)Debit Bank Loan $4000; credit Cash at bank $4000

---

Definitions:

Direct Labor Costs

The total cost of all the labor that is directly involved in the production of goods or the performance of services.

Variable Cost

Expenses that undergo alteration in response to the volume of production executed.

Office Rent

The cost associated with leasing a space for business operations or administrative work.

Financial Break-even Point

The Financial Break-even Point is the level of revenue at which a company's total costs and total revenues are exactly equal, indicating no net profit or loss.