Interest Expense Had an Adjusted Balance of $1,178

question 149

Multiple Choice

Interest Expense had an adjusted balance of $1,178.The adjusting entry for accrued interest was for $382.The unadjusted balance for Interest Expense was a:

• A)$382 debit.
• B)$1,560 debit.
• C)$1,560 credit.
• D)$796 debit.

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Definitions:

Dividends

Sum disbursed by a business to its shareholders, indicative of a fraction of the business's profit.

Contractual Agreement

A legally binding agreement between two or more parties outlining duties, terms, and conditions that those parties have agreed upon.

Bonds And Stocks

Financial instruments where bonds represent loans to an entity that pays periodic interest, and stocks represent ownership shares in a corporation.

Secondary Equity Offering

A process where a company that is already publicly traded issues additional shares to investors.