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Stone Harbor Products Takes Out a Bank Loan

Question 62

Multiple Choice

Stone Harbor Products takes out a bank loan.It receives $100,000 and signs a promissory note to pay back the loan over 5 years.


A) A new financial asset was created in this transaction.
B) A financial asset was traded for a real asset in this transaction.
C) A financial asset was destroyed in this transaction.
D) A real asset was created in this transaction.

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