The Adjusting Entry That Would Be Made at the Year-End

question 141

Multiple Choice

The adjusting entry that would be made at the year-end accruing the interest expense of $100 on a note is:

• A) Interest Expense 100
• Notes payable 100
• B) Interest Payable 100
• Interest Expense 100
• C) Interest Expense 100
• Interest Payable 100
• D) Notes payable 100
• Interest Expense 100

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for monetary policy, bank regulation, and the stability of the financial system.

Fed Open Market Committee

The branch of the Federal Reserve responsible for open market operations, including the buying and selling of government securities, to influence the money supply and interest rates.

Money Supply

The complete sum of financial resources present within an economy at a given moment, encompassing cash, coins, and the funds available in checking and savings accounts.

M1

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits, checking accounts, and negotiable order of withdrawal (NOW) accounts.