A promissory note from the sales of merchandise would have which effect on the categories?
A)Total assets would be increased.
B)Total liabilities would be increased.
C)Owner's equity would be decreased.
D)None of these answers are correct.

Question

Quizplus · Accepted Answer

When a promissory note is received from the sales of merchandise, it increases total assets because the promissory note is considered a receivable, which is an asset.

A Promissory Note from the Sales of Merchandise Would Have