A Firm Repays $4000 of an Existing Bank Loan

question 43

Multiple Choice

A firm repays $4000 of an existing bank loan. The transaction is recorded as which of the following entries?

• A) DR Bank loan $4000; CR Owner's capital $4000
• B) DR Cash at bank $4000; CR Accounts receivable $4000
• C) DR Cash at bank $4000; CR Bank loan $4000
• D) DR Bank loan $4000; CR Cash at bank $4000

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Definitions:

Private Property

Ownership of land, resources, or objects by individuals or corporations, protected by law.

Just Compensation

The concept that property owners must be fairly compensated when their property is taken for public use under eminent domain.

Public Areas

Spaces that are open and accessible to people, usually owned and maintained by the government, such as parks, streets, and public squares.

Hague

A city in the Netherlands, known for hosting the International Court of Justice and other important international organizations.