Which of the Following Doesn't Correctly Describe a Journal Entry

question 132

Multiple Choice

Which of the following doesn't correctly describe a journal entry which debits interest expense and credits interest payable?

• A)It increases expenses and decreases retained earnings.
• B)It decreases net income and decreases stockholders' equity.
• C)It increases expenses and increases liabilities.
• D)It decreases assets and decreases stockholders' equity.

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Definitions:

Institutional Program

A comprehensive initiative conducted by an organization, covering aspects like training, development, or welfare, ingrained within its structure.

Defined Benefit Plan

A retirement plan where employee benefits are calculated based on a formula considering factors such as salary history and duration of employment.

Commercial Airline Pilot

A trained professional who operates and navigates airplanes for commercial airlines, carrying passengers and cargo over scheduled routes.

Military General

A high-ranking officer in the military, responsible for strategic planning and command of military operations.