A business purchases a truck by signing a note payable to the seller. Such a transaction would include a:

A. credit to truck
B. debit to Note Payable
C. credit to Note Payable
D. debit to an expense account

Ans: C. credit to Note Payable

Business

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A potential fraud risk associated with debt obligations is the intentional misclassification of short-term debt as long-term debt

a. True b. False Indicate whether the statement is true or false

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