Which of the Following Statements Is Not Correct

question 89

Multiple Choice

Which of the following statements is not correct?

• A)The entry to record the issuance of a promissory note includes a credit to Interest Payable for the amount of interest that will accrue on the note until it is paid at maturity.
• B)The Notes Payable account is always debited or credited for the face value of a note.
• C)The entry to record the issuance of a promissory note includes a credit to the Notes Payable account.
• D)The entry to credit the payment of a note payable includes a debit to the Notes Payable account.

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Definitions:

Financial Statements

Documents that provide an overview of a business or individual's financial condition in a specific period, including balance sheets, income statements, and statements of cash flows.

Decision Making

A process of selecting the best option among multiple alternatives to achieve an objective or a solution to a problem.

Net Income

A financial term representing the profit left after all expenses, taxes, and costs have been subtracted from total revenue.

Income

Money received, especially on a regular basis, for work or through investments.