Sylvia borrowed money for her business from a local bank.What accounts will be affected?

Question

Quizplus · Accepted Answer

When Sylvia borrows money from the local bank, she will receive cash from the bank, which will increase her cash account. However, she also has to record the amount of money that she owes to the bank, which is represented by a liability account called notes payable. Therefore, the accounts affected are cash (which increases) and notes payable (which increases).

Sylvia Borrowed Money for Her Business from a Local Bank