If the Adjusting Entry to Accrue Interest of $1,000 on a Note

question 213

Multiple Choice

If the adjusting entry to accrue interest of $1,000 on a note receivable is omitted,then:

• A)assets,net income,and stockholders' equity are overstated by $1,000.
• B)assets,net income,and stockholders' equity are understated by $1,000.
• C)liabilities are understated by $1,000,net income is overstated by $1000,and stockholders' equity is overstated by $1,000.
• D)assets are overstated,net income is understated,and stockholders' equity is understated.

---

Definitions:

Vacuum Package

A packaging method that involves removing air from a package and sealing it to extend the shelf life of its contents, protect against spoilage, and reduce volume.

Red Meat

Red meat refers to the meat of mammals, which is typically darker in color than poultry due to higher levels of myoglobin, often including beef, pork, and lamb.

BioFuel Energy

Energy produced from organic materials or biomass, offering a sustainable alternative to fossil fuels.

Ethanol Producer

A company or facility that manufactures ethanol, a type of biofuel, often from agricultural products like corn or sugarcane.