A Buyer Pays a Note in Full on Its Maturity

question 109

Multiple Choice

A buyer pays a note in full on its maturity date. The buyer would record a:

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

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Definitions:

Magnetic Poles

The two ends of a magnet where the magnetic field is strongest, conventionally labeled as the North and South poles.

Natural Magnets

Materials found in nature, such as magnetite, that possess magnetic properties and generate a magnetic field without any external influence.

Iron

A chemical element with symbol Fe, commonly used in its magnetic form in motors, generators, and transformers due to its ferromagnetic properties.

Cobalt

A chemical element with symbol Co and atomic number 27, known for its strength and high temperature resistance, often used in alloys and batteries.