A Company Borrowed $24,000 from the Bank by Signing a Long-Term

Multiple Choice

A company borrowed $24,000 from the bank by signing a long-term note. How does this transaction affect the accounting equation?

A) Add $24,000 to Cash and add $24,000 to Accounts Payable.
B) Add $24,000 to Cash and add $24,000 to Notes Payable.
C) Add $24,000 to Cash and add $24,000 to Retained Earnings.
D) Add $24,000 to Accounts Receivable and add $24,000 to Accounts Payable.