Accrued Interest on a Short-Term Note Payable Is Recorded By

question 71

Multiple Choice

Accrued interest on a short-term note payable is recorded by:

• A) debiting Cash and crediting Interest Payable
• B) debiting Interest Payable and crediting Cash
• C) debiting Interest Payable and crediting Interest Expense
• D) debiting Interest Expense and crediting Interest Payable

---

Definitions:

Company Cost

Expenses incurred by a business in the process of producing goods or services, including operational, production, and capital costs.

Capital

Financial assets or the financial value of assets, such as cash and goods, used to fund the production of goods and services or to pay for investments.

Outstanding Debt

The total amount of debt that a company or individual owes that has not yet been paid.

Nondiversifiable Risk

A type of risk inherent to the entire market or market segment that cannot be eliminated through diversification.