Which of the Following Is Recorded with a Debit to Cash

question 71

Multiple Choice

Which of the following is recorded with a debit to Cash and a credit to Notes Receivable?

• A)The adjusting entry to record interest owed.
• B)The receipt of an interest payment.
• C)The receipt of the principal payment.
• D)The issuance of a note.

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Definitions:

Administrative Expense

Expenses that are not directly tied to the production or selling of goods and services, such as salaries of senior executives and costs of general services.

Period Cost

Costs that are not directly tied to the production process and are expensed in the period they are incurred, such as selling and administrative expenses.

FIFO Cost Flow

An inventory valuation method where the oldest inventory items are recorded as sold first, leaving the newest items in inventory.

Finished Goods Inventory

Finished Goods Inventory consists of the completed products that are ready for sale but have not yet been sold, representing one of the components of a company's total inventory.