The information in the following T-accounts indicates that
A)the company borrowed $850.
B)the company loaned $850 to another company.
C)the company repaid a $850 debt.
D)stockholders invested $850 cash in the corporation.

Question

The information in the following T-accounts indicates that 
A)the company borrowed $850. 
B)the company loaned $850 to another company. 
C)the company repaid a $850 debt. 
D)stockholders invested $850 cash in the corporation.

Quizplus · Accepted Answer

The Cash account has increased by $850 while the Notes Payable account has also increased by $850, indicating that the company has borrowed $850.

The Information in the Following T-Accounts Indicates That