When a Corporation Pays a Note Payable and Interest

question 12

Multiple Choice

When a corporation pays a note payable and interest,

• A) the account notes payable will be increased.
• B) the account interest expense will be decreased.
• C) they will debit notes payable and interest expense.
• D) they will debit cash.

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Definitions:

Effectiveness

The ability of an entity or process to achieve its goals or intended results with a minimal amount of waste, expense, or unnecessary effort.

Customer Satisfaction

The measure of how products or services provided by a company meet or exceed the expectations of its customers.

RFID

Short for Radio-Frequency Identification, a technology used for tagging and identification of items using radio waves, commonly used in tracking inventory and assets.

Procurement Processes

The activities involved in obtaining goods or services, including selection, purchasing, and contract management, to meet organizational needs.