The Journal Entry for Accrued Interest on a Note Receivable

question 110

Multiple Choice

The journal entry for accrued interest on a note receivable includes:

• A) debiting Interest Income.
• B) debiting Interest Expense.
• C) crediting Interest Expense.
• D) crediting Interest Income.

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Definitions:

Information-Only Basis

A term that indicates information is provided without any advice, recommendation, or endorsement.

Illegal

Activities or actions that are prohibited by law and subject to penalties.

Non-Canadian Ship

A vessel that is registered under the flag of a country other than Canada, subject to the maritime laws of its flag state.

Canadian Coastal Trade

The transport of goods or passengers between two points within Canada by sea, subject to specific regulations and protections.