The Adjusting Entry for Accrued Interest on a Notes Receivable

question 93

Multiple Choice

The adjusting entry for accrued interest on a notes receivable would include:

• A)a debit to Interest Expense.
• B)a credit to Accrued Interest Receivable.
• C)a credit to Interest Income.
• D)a credit to Interest Payable.

---

Definitions:

Mirror-Image Rule

A principle in contract law stating that an offer must be accepted exactly without modifications for a valid contract to be formed.

Industry-Specific

Refers to products, services, or standards that are specific to a particular industry or sector.

Restatement of Contracts

A comprehensive compilation of legal principles regarding contract law intended to clarify, modernize, and illustrate current legal practices.

Silence

The absence of any response or acknowledgment, which in some legal contexts can signify agreement or acquiescence.