An Adjusting Entry Is Not Required for

question 27

Multiple Choice

An adjusting entry is not required for

• A) outstanding checks.
• B) collection of a note by the bank.
• C) NSF checks.
• D) bank service charges.

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Definitions:

Interest Payment

The payment a borrower makes to a lender as compensation for the use of borrowed money.

Journal Entry

A journal entry is a record of a financial transaction in the accounting records, showing the accounts and amounts to be debited and credited.

Discount on Bonds Payable

The difference between the face value of a bond and the price for which it sells when the bond's market value is lower than its face value.

Installment Note

A debt instrument that requires regular payments, or installments, of principal and interest over a set period, until the debt is fully repaid.