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the entry to record the initial borrowing of cash by issuing a promissory note causes a(n) . (select all that apply.) multiple select question. increase in stockholders' equity increase in assets decrease in liabilities decrease in assets decrease in stockholders' equity increase in liabilities

Respuesta :

Option (b) and option (f) are the appropriate choices. As a result of the entry to reflect the initial borrowing of funds through the issuance of a promissory note, both assets and liabilities increase.

Promissory notes: what are they?

IOUs, loan agreements, and simple notes are other names for promissory notes. It is a formal document that states that the borrower has agreed to pay the lender a specific sum of money within a specific time limit. A legal commitment to repay the debt is established by this type of document, which is also enforceable in court.

How do you document a promissory note in a journal?

By debiting the account that receives value, typically the cash account, and crediting the notes payable account, the promissory note journal entry is made.

Learn more about promissory notes: https://brainly.com/question/948552

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