A Note Receivable Is Issued in December

question 131

Multiple Choice

A note receivable is issued in December.When the note is paid the following February, the payee's entry includes (assuming a calendar-year accounting period and no reversing entries) a

• A)credit to Interest Receivable.
• B)credit to Cash.
• C)debit to Notes Receivable.
• D)debit to Interest Income.

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Definitions:

Causation

The relationship between cause and effect, where one event (the cause) leads to the occurrence of another event (the effect).

Mental Health Problems

Disorders that can affect your mood, thinking, and behavior, leading to distress or impairment in social, occupational, or other important activities.

Correlation

A measure of the degree to which two variables change together, indicating a relationship between them but not causation.

Survey Study

A research method involving the collection of data from a predetermined population or group by means of a questionnaire or interview.