The Journal Entry to Record the Payment of an Ordinary

question 22

Multiple Choice

The journal entry to record the payment of an ordinary note is:

• A) debit Cash; credit Notes Payable.
• B) debit Cash; credit Accounts Payable.
• C) debit Notes Payable and Interest Expense; credit Cash.
• D) debit Notes Payable and Interest Receivable; credit Cash.

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Definitions:

Planned Economy

Economic system in which government controls determine business ownership, profits, and resource allocation to accomplish government goals rather than those set by individual firms.

Mixed Market Economy

features both private and public enterprise, blending elements of capitalist and socialist economic systems.

Private Enterprise System

Economic system that rewards firms for their ability to identify and serve the needs and demands of customers.

Different Kinds

Refers to a variety of types, categories, or classifications within a certain context or domain.