In the accompanying figure, item 3 points to the ____.
Definitions:
Interest-Bearing Note
A debt instrument in which the issuer pays the holder interest at a specified rate over the term of the note.
Accrued Interest
Interest that has been incurred but not yet paid or received in cash.
Adjusting Entry
An accounting record made to adjust income or expenditure in accounts to reflect the accrual basis of accounting properly.
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