Which One of the Following Is the Correct Double Entry

question 47

Multiple Choice

Which one of the following is the correct double entry to record a payment of loan interest from the bank account in an entity's books of account?

• A) Debit loan interest, Credit bank
• B) Debit loan interest, Credit loan interest accrual
• C) Debit loan, Credit cash
• D) Debit bank, Credit loan interest

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Definitions:

Custom Goods

Products that are personalized or made to order according to the specifications provided by the customer.

Work in Process Account

An account used to record the costs associated with goods that are partially completed in manufacturing but not yet ready for sale.

Job Order Cost System

An accounting system used to track costs associated with specific jobs or orders, including materials, labor, and overhead.

Cost Performance

A measure of the efficiency of budget management, comparing the budgeted cost of work performed with the actual cost.