If a company borrows money from a bank and signs an agreement to repay the loan several years from now,in which account would the company report the amount borrowed?
A)Common Stock
B)Accounts Payable
C)Notes Payable (long-term)
D)Retained Earnings

Question

Quizplus · Accepted Answer

Debt financing refers to money obtained through loans.A formal loan with the bank is reported as Notes Payable (long-term).

If a Company Borrows Money from a Bank and Signs