The Journal Entry for Accrued Interest on a Note Payable

question 73

Multiple Choice

The journal entry for accrued interest on a note payable by the borrower includes:

• A)a debit to Interest Expense and credit to Cash.
• B)a debit to Interest Expense and credit to Interest Payable.
• C)a debit to Interest Payable and credit to Cash.
• D)a credit to Interest Expense and debit to Notes Payable.

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Definitions:

Sample Means

The average value of a set of observations, taken from a sample of the population.

Analysis of Variance

A statistical method used to compare the means of three or more samples to find out if at least one is significantly different from the others.

Population Means

The average value of a particular characteristic across all members of a defined population.

Independent Random Sampling

A method of sampling where each member of the subset is chosen randomly and entirely by chance, ensuring that every subset of the population has an equal opportunity of selection.