An Adjusting Entry Made to Record Accrued Interest on a Note

question 254

Multiple Choice

An adjusting entry made to record accrued interest on a note receivable due next year consists of a:

• A)debit to Interest Expense and a credit to Interest Payable.
• B)debit to Interest Receivable and a credit to Interest Revenue.
• C)debit to Interest Expense and a credit to Notes Payable.
• D)debit to Interest Expense and a credit to Cash.

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Definitions:

Access

A database management system from Microsoft that combines the relational Microsoft Jet Database Engine with a graphical user interface and software-development tools.

Validation Rule Expression

A formula or criterion that a data entry must comply with to be accepted by a system or application.

Currency Value

The numerical value assigned to a currency, which can fluctuate based on economic factors and is critical in financial transactions.

Price Field

A column in a database or software application where the price of an item or service is recorded.