A Business Makes a Loan Payment on the 15^th of Each

question 12

Multiple Choice

A business makes a loan payment on the 15^th of each month. At the end of December, it has accrued 16 days worth of interest on the loan, which amounts to $450. The adjusting entry necessary at the end of the fiscal period ending December 31 would be recorded as a

• A) debit to Interest Payable and a credit to Interest Expense of $450
• B) debit to Prepaid Interest and a credit to Interest Expense of $450
• C) debit to Interest Expense and a credit to Interest Payable of $450
• D) debit to Interest Expense and a credit to Prepaid Interest of $450

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Definitions:

Share Genes

To share genes means to have genetic material in common, typically referring to the genetic similarities among relatives or species.

Social Insects

Insects that live in highly organized colonies or societies, displaying complex behaviors like division of labor and cooperative breeding.

Reproducing Members

Individuals within a population that are capable of producing offspring, contributing to the genetic diversity and continuation of the species.

Subordinate Males

Male individuals in animal societies who hold a lower rank and have fewer privileges than dominant males.