Question
A company received $75,000 cash from a bank loan that must be repaid in three years.
Which of the following items would be increased by this bank loan transaction? (check all that apply)
Notes Payable
Interest Payable
Current Assets
Revenue
Cash from Investing
1 point
7.
Question 7
A company declared
Which of the following items would be increased by this bank loan transaction? (check all that apply)
Notes Payable
Interest Payable
Current Assets
Revenue
Cash from Investing
1 point
7.
Question 7
A company declared
Answers
GPT-4o mini
In the scenario you've provided, where a company received $75,000 cash from a bank loan that must be repaid in three years, the following items would be increased by this bank loan transaction:
1. **Notes Payable** - This represents the liability incurred by the company to repay the loan.
2. **Cash from Investing** - This is often not affected directly, but since you received cash from the loan, **Current Assets (Cash)** would increase because cash is an asset.
The other items would not be increased by this transaction:
- **Interest Payable** - This would only increase if the company incurred interest expense on the loan.
- **Current Assets** - Cash would increase, but if specifically referred to other current assets, they might not be directly impacted.
- **Revenue** - This is not affected by the loan; revenue comes from operations, not from borrowing money.
So the correct answers in this case are:
- **Notes Payable**
- **Current Assets (specifically Cash)**
If you have any more details about other transactions or specific clarifications related to the loan, feel free to share!
1. **Notes Payable** - This represents the liability incurred by the company to repay the loan.
2. **Cash from Investing** - This is often not affected directly, but since you received cash from the loan, **Current Assets (Cash)** would increase because cash is an asset.
The other items would not be increased by this transaction:
- **Interest Payable** - This would only increase if the company incurred interest expense on the loan.
- **Current Assets** - Cash would increase, but if specifically referred to other current assets, they might not be directly impacted.
- **Revenue** - This is not affected by the loan; revenue comes from operations, not from borrowing money.
So the correct answers in this case are:
- **Notes Payable**
- **Current Assets (specifically Cash)**
If you have any more details about other transactions or specific clarifications related to the loan, feel free to share!