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In the books of Billings Computers Ltd., a journal entry is recorded to debit the bank loan account for $10,000 and to credit the cash

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In the books of Billings Computers Ltd., a journal entry is recorded to debit the bank loan account for $10,000 and to credit the cash account for $10,000. What is the most likely transaction underlying this journal entry? The bank paid Billings $10,000 for computer equipment Billings paid the bank $10,000 interest on its bank loan Billings borrowed $10,000 from the bank. Billings repaid a $10,000 bank loan. O Billings paid the owners of the business $10,000 The interest cover ratio measures the leverage of the company the efficiency of debt O the weighted average cost of capital the relationship between interest and profit the relationship between interest and debt

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