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Item $6$

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Forest Beach Company experienced an event that had the following effects on its financial statements. The letters $$NA$$ and $$IA$$ indicate that the component of the equation is $$Not Affected$$ and $$Investing Activities$$ respectively.

Balance sheetIncome StatementStatement of Cash FlowsAssets$=$Liabilities$+$EquityRevenues$$Expenses$=$Net Income$/+=$NA$+$NANA$$NA$=$NA$+$ IA

Which of the following events could have caused these effects?

Multiple Choice

Collected cash for the principal balance of a note receivable.

Borrowed cash from a bank.

Loaned cash to an employee.

Accrued interest revenue.