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

Question

Quizplus · Accepted Answer

When Trina borrows money from the bank, she receives cash, which is recorded as a debit to Cash. This creates a liability for Trina, which is recorded as a credit to Notes Payable. Therefore, the two accounts that will be affected are Cash and Notes Payable, which makes option B the best choice. Accounts Payable and Revenue are not involved in this transaction. Accounts Receivable and Revenue do not make sense in this scenario, as Trina borrowed money instead of making a sale.

Trina Borrowed Money for Her Business from a Local Bank