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Establishing a Note Receivable by Loaning Cash to Another Company

Question 129

Multiple Choice

Establishing a note receivable by loaning cash to another company will have which of the following net effects on the accounting equation?


A) Increase assets;No effect on liabilities;Increase stockholders' equity
B) Increase assets;No effect on liabilities;No effect on stockholders' equity
C) No effect on assets;No effect on liabilities;Decrease stockholders' equity
D) No effect on assets;No effect on liabilities;No effect on stockholders' equity

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