Which of the following accounts will be credited by the borrower when a promissory note is issued?
A) Note Payable
B) Note Receivable
C) Interest Payable
D) Cash

Question

Quizplus · Accepted Answer

When a borrower issues a promissory note, it increases their liability because they are promising to pay a certain amount in the future. Therefore, the Note Payable account, which represents this liability, is credited.

Which of the Following Accounts Will Be Credited by the Borrower