Question

Borrowing $50,000 from the bank and signing a note payable causes: (Select all that apply.)

a)cash to decrease
b)notes payable to decrease
c)notes payable to increase
d)cash to increase

Answer 1

Borrowing $50,000 from the bank and signing a note payable causes notes payable and cash to increase.

Step-by-step explanation:

Borrowing $50,000 from the bank and signing a note payable causes:

• Notes payable to increase: When you borrow money from the bank, you create a liability called notes payable, which increases.
• Cash to increase: When you borrow money, you receive cash, which increases.

Therefore, the correct answers are:

• Notes payable to increase
• Cash to increase