At the End of the Year, a Company Makes a Journal

question 26

Multiple Choice

At the end of the year, a company makes a journal entry to accrue the interest expense on a short-term note payable. As a result of this transaction:

• A)current liabilities increase and current assets decrease.
• B)current liabilities increase and equity increases.
• C)current liabilities increase and equity decreases.
• D)current liabilities decrease and equity decreases.

---

Definitions:

Homework

A set of tasks assigned by teachers to students to be completed outside the classroom.

TV Viewing

The act of watching television content, which can influence behavior, attitudes, and perceptions through exposure to various messages.

Rules

Rules are directives or principles governing behavior or the operation of systems, designed to regulate conduct.

Induction

The process of reasoning or argument that moves from specific instances to a general conclusion.