Question

Question content area notes may be issued

a. when borrowing money
b. when assets are purchased
c. to creditors to temporarily satisfy an account payable created earlier
d. all of these choices

Answer 1

Content area notes are typically issued when borrowing money from a bank or through bonds and when satisfying a short-term creditor debt.

Step-by-step explanation:

Content area notes may be issued when borrowing money, which encompasses scenarios such as when a firm is accessing financial capital and opts to borrow from a bank or issue bonds. Content area notes are typically issued when borrowing money from a bank or through bonds and when satisfying a short-term creditor debt.

This borrowing is often because the firm wants to maintain operational control and avoid being subject to shareholders. Bonds are also used by the federal and local government, as well as private companies, to borrow money. Furthermore, content area notes can be issued to creditors to temporarily satisfy an account payable that was created earlier, signifying a short-term agreement to address outstanding debts.