An Adjusting Entry Made to Record Accrued Interest on a Note

question 159

Multiple Choice

An adjusting entry made to record accrued interest on a note payable due next year consists of

• A) Cash - Debit; Interest Expense - Credit.
• B) Interest Receivable - Debit; Interest Income - Credit.
• C) Interest Payable - Debit; Interest Expense - Credit.
• D) Interest Expense - Debit; Interest Payable - Credit.

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Definitions:

Actual Average

The true or exact mean calculated from a set of data, as opposed to an estimated or theoretical average.

Rhythm Method

A form of natural family planning based on tracking the menstrual cycle to predict fertile days to avoid or achieve pregnancy.

Birth Control

A method or device used to prevent pregnancy.

Total Fertility Rate

The average number of children that would be born to a woman over her lifetime in a given population.