Multiple Choice
[The following information applies to the questions displayed below.]
On January 1, Year 1, Echols Company borrowed $100,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan equals $25,045.65.
-Which of the following shows how the borrowing of cash from Sun Bank on January 1,Year 1,affects the elements of the financial statements?![[The following information applies to the questions displayed below.] On January 1, Year 1, Echols Company borrowed $100,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan equals $25,045.65. -Which of the following shows how the borrowing of cash from Sun Bank on January 1,Year 1,affects the elements of the financial statements? A) Option A B) Option B C) Option C D) Option D](https://d2lvgg3v3hfg70.cloudfront.net/TB6522/11ea8a6f_8d5c_2299_a2a1_11d5dc04fac6_TB6522_00.jpg)
A) Option A
B) Option B
C) Option C
D) Option D
Correct Answer:
Verified
Correct Answer:
Verified
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