Nacron Company Borrowed $15000 from the Bank Signing a 6

question 147

Multiple Choice

Nacron Company borrowed $15000 from the bank signing a 6% 3-month note on September 1.Principal and interest are payable to the bank on December 1.If the company prepares monthly financial statements the adjustment that the company should make for interest on September 30 would be:

• A)increase Interest Expense $75; increase Interest Payable $75.
• B)increase Interest Expense $900; increase Interest Payable $900.
• C)decrease Note Payable $900; decrease Cash $900.
• D)increase Cash $75; increase Interest Payable $75.

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Definitions:

Inputs

In the context of organizations, refers to the resources, such as human labor, capital, and materials, that are required to produce goods or services.

Outcomes

The results or consequences of an action or a series of actions, often measured in terms of success, failure, or progress.

Effective Feedback

Constructive information given to individuals to help them recognize and build on their strengths and identify areas for improvement.

Comparison Other

A reference point used by individuals to evaluate their own situation, abilities, or opinions, often through comparison with others.