Indicate the Account(s) to Be Debited and Credited to Record

question 78

Multiple Choice

Indicate the account(s) to be debited and credited to record the following transactions.
-A promissory note received in granting a time extension to a charge customer.
Debit ________ Credit ________

• A)Cash
• B) Notes receivable
• C)Accounts receivable
• D) Interest receivable
• E)Notes payable
• F) Accounts payable
• G)Interest payable
• H) Discount on notes payable
• I) Interest expense
• J) Interest income
• K) Sales

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Definitions:

Portfolio

A portfolio consisting of various financial instruments such as stocks, bonds, commodities, cash, and cash alternatives, along with mutual funds and ETFs.

Risk Averse

The preference to avoid uncertainty, expressing a behavior where individuals prefer known risks over unknown outcomes.

Financial Investment

Allocating money into an asset or a project with the expectation of generating income or profit.

Government Bond

A type of investment where an investor loans money to a government in exchange for periodic interest payments plus the return of the bond's face value at maturity.