Which of the Following Would Be the Adjusting Entry to Record

question 59

Multiple Choice

Which of the following would be the adjusting entry to record accrued interest on a loan made to the business at the end of an accounting period?

• A)Dr.Interest expense,Cr.Cash
• B)Dr.Interest expense,Cr.Interest payable
• C)Dr.Interest payable,Cr.Interest income
• D)Dr.Interest payable,Cr.Cash

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Definitions:

Research And Development

Actions associated with the development, launch, and enhancement of products and processes.

Operating Expenses

Costs associated with running a business's core operations on a daily basis, excluding the cost of goods sold.

Current Assets

Assets that are cash or can be converted into cash within a year, including cash, accounts receivable, and inventory.

Amortized

The process of gradually writing off the initial cost of an asset over a period, or similarly, spreading loan payments over the loan term.