At the End of the Fiscal Year, an Adjusting Entry

question 54

Multiple Choice

At the end of the fiscal year, an adjusting entry is made that increases both interest expense and interest payable.This entry is an application for which accounting principle?

• A) full disclosure
• B) materiality
• C) matching
• D) going concern
• E) realization

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Definitions:

Trial Close

A technique used in sales to gauge a prospect's readiness to buy by asking a question that assumes they are moving towards a purchase.

Buying Signals

Indicative actions or expressions from a potential buyer suggesting an interest in making a purchase.

Close a Sale

The process of successfully securing a purchase agreement or deal with a customer, concluding the sales process.

Remain Silent

A sales technique where the seller stops talking to give the potential buyer time to think or react, often after asking a question or making a proposal.