As Interest Is Recorded on an Interest-Bearing Note, the Interest

question 141

Multiple Choice

As interest is recorded on an interest-bearing note, the Interest Expense account is

• A)increased and the Notes Payable account is increased.
• B)increased and the Notes Payable account is decreased.
• C)increased and the Interest Payable account is increased.
• D)decreased and the Interest Payable account is increased.

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