A cash payment on a loan affects which of the following accounts?
A) Cash and Accounts Receivable
B) Cash and Notes Payable
C) Cash and an expense account
D) Cash and a revenue account

Question

Quizplus · Accepted Answer

A cash payment on a loan reduces the balance of the Notes Payable account, which is a liability account. It also reduces the balance of the Cash account, which is an asset account. Therefore, the correct answer is B) Cash and Notes Payable.

A Cash Payment on a Loan Affects Which of the Following