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

---

Definitions:

Growth

The process of increasing in size, amount, or importance.

Maslow's Hierarchy

A theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Physiological

Relates to the functions and activities of living organisms and their parts.

Production Line Method

A manufacturing process in which parts or components of an end product are made in a sequential order, thus enhancing efficiency and productivity.