Specialty Inc

question 33

Multiple Choice

Specialty Inc.converts an existing account receivable to a note receivable to allow an extended payment period.Specialty receives a $2,000,3-month,12% promissory note from its customer.What entry will Specialty make upon receipt of the note?

• A)Debit Notes Receivable and credit Accounts Receivable for $2,060.
• B)Debit Accounts Receivable and credit Notes Receivable for $2,000.
• C)Debit Notes Receivable for $2,000,debit Interest Receivable for $60,credit Accounts Receivable for $2,000,and credit Interest Revenue for $60.
• D)Debit Notes Receivable and credit Accounts Receivable for $2,000.

Differentiate between the accrual basis of accounting and the cash basis.

Identify the financial statement impacts of omitting certain adjusting entries.

Distinguish between accounts that typically require an adjusting entry and those that do not.

Journalize different types of adjusting entries, including prepaid expenses, unearned revenue, and depreciation.

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Definitions:

Marital Satisfaction

The degree of contentment and fulfillment individuals feel within their marriage or long-term romantic relationship.

Perceived Equity

The feeling or perception that the balance between one's inputs and outcomes in a relationship or situation is fair.

Household Duties

Tasks and responsibilities associated with the maintenance and functioning of a home, such as cleaning and cooking.

Committed Relationships

Long-term relationships where partners are emotionally and usually legally bound to each other.