Solved

A Business Makes a Principal Payment of Cash on a Note

Question 21

Multiple Choice

A business makes a principal payment of cash on a note payable. The note payable was originally issued for the purchase of equipment. Which of the following occurs?


A) An asset is debited and a liability is credited.
B) A liability is debited and a liability is credited.
C) An asset is credited and a liability is debited.
D) An asset is debited and an asset is credited.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents