Assuming No Adjusting Journal Entries Have Been Made,the Journal Entry

question 125

Multiple Choice

Assuming no adjusting journal entries have been made,the journal entry to record the cash interest payment on the due date for bonds issued at a discount results in which of the following?

• A)An increase in expenses and a decrease in liabilities.
• B)An increase in expenses and an increase in liabilities.
• C)A decrease in both liabilities and stockholders' equity.
• D)A decrease in both assets and liabilities.

---

Definitions:

Management Objectives

Specific goals set by a management team to guide the operations and direction of a company or organization.

Compressed Workweek

An alternative work schedule in which employees work fewer than the normal five days a week but still put in a normal number of hours per week.

Peter Drucker

An Austrian-born American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation.

Telework Centre

A facility that offers infrastructure and services to enable people to work remotely, often located away from traditional office environments.