A Company Went to the Bank and Borrowed $10,000 on a Long-Term

Multiple Choice

A company went to the bank and borrowed $10,000 on a long-term note.In transaction analysis,how does this transaction affect the accounting equation?

A) Add $10,000 to Cash account and add $10,000 to Accounts Payable account.
B) Add $10,000 to Cash account and add $10,000 to Notes Payable account.
C) Add $10,000 to Cash account and add $10,000 to Retained Earnings account.
D) Add $10,000 to Accounts Receivable account and add $10,000 to Accounts Payable account.