Carnegie Company experienced an accounting event that is recorded in the following T-accounts: Which of the following choices accurately reflects how this event would affect Carnegie's financial statements.
A)Option A
B)Option B
C)Option C
D)Option D

Question

Carnegie Company experienced an accounting event that is recorded in the following T-accounts:  Which of the following choices accurately reflects how this event would affect Carnegie's financial statements. 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Issuing a discount note increases assets (cash) and increases liabilities (notes payable, less discount on notes payable). The cash received is reported as a cash inflow for financing activities.

Carnegie Company Experienced an Accounting Event That Is Recorded in the Following