The entry to record the initial borrowing of cash by issuing a promissory note causes a(n):
A)increase in stockholders' equity.
B)decrease in assets.
C)decrease in stockholders' equity.
D)increase in liabilities.

Name: The entry to record the initial borrowing of cash by issuing a promissory note causes a(n): A)increase in stockholders' equity. B)decrease in assets. C)decrease in stockholders' equity. D)increase in liabilities.
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Question

Quizplus · Accepted Answer

The entry increases Cash,an asset,and increases Notes Payable,a liability.

The Entry to Record the Initial Borrowing of Cash by Issuing