The Journal Entry a Company Records for the Payment of Interest

question 87

Multiple Choice

The journal entry a company records for the payment of interest, interest expense, and amortization of bond discount is

• A) debit Interest Expense, credit Cash and Discount on Bonds Payable
• B) debit Interest Expense, credit Cash
• C) debit Interest Expense and Discount on Bonds Payable, credit Cash
• D) debit Interest Expense, credit Interest Payable and Discount on Bonds Payable

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Definitions:

Power And Authority

The capacity to influence or direct people's behavior and the legitimate right to make decisions and enforce obedience.

Employee Involvement

The degree to which employees are able to participate in decision-making processes and contribute ideas within an organization.

Charismatic Leaders

Leaders who possess a magnetic personality and charm, inspiring devotion and enthusiasm in others.

Referent Power

is a type of influence based on the attractiveness and charisma of the leader, which inspires loyalty, admiration, and emulation.