On November 1,2011,The Mane Event,Inc.borrowed $40,000 from a local bank for 24 months at 11% annual interest.Both principal and interest are due when the note matures.Which statement below is TRUE?
A) The note is a current-term liability on the balance sheet at Dec.31,2011.
B) The note is a long-term liability on the balance sheet at Dec.31,2012.
C) The transaction represents an investing activity.
D) The transaction represents a financing activity.
Correct Answer:
Verified
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