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:

Systematic Desensitization

A behavioral therapy technique designed to reduce anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.

Aversion Therapy

A form of psychological treatment where an undesirable behavior is paired with an unpleasant stimulus to reduce the behavior's occurrence.

Hierarchy Of Stimuli

A concept in psychology indicating that certain stimuli are processed and responded to at different priority levels.

Play Therapy

Therapeutic process, often used with children, that employs toys to help them resolve psychological problems.