What Is the Holder of the Note's Entry to Record

question 31

Multiple Choice

What is the holder of the note's entry to record the proceeds of a note received, with interest accrued in the previous year (assume there is no reversing entry) ?

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

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Definitions:

Unconscionable

A term used to describe an agreement or term within an agreement that is so unjust or overwhelmingly one-sided in favor of one party that it is deemed unenforceable under the law.

Revenue-Raising

The process of generating income for a government or organization, often through taxes or fees.

Licensing Law

Legal regulations governing the process and requirements for granting permissions to individuals or entities to conduct activities that are subject to regulation.

Educational Requirements

Refers to the specific levels of education or particular qualifications necessary for a job position, professional certification, or other formal achievement.