Principle Place Determines That It Has NOT Yet Recorded the 2020

question 42

Multiple Choice

Principle Place determines that it has NOT yet recorded the 2020 accrual for interest revenue to be received in 2021. Assuming the amount to be recorded for 2020 is $ 6,000, the required adjustment at December 31, 2020, is

• A) debit Interest Receivable and credit Interest Revenue $ 6,000.
• B) debit Interest Revenue and credit Interest Receivable $ 6,000.
• C) debit Interest Payable and credit Interest Revenue $ 6,000.
• D) No adjusting entry is required.

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Definitions:

Northern States

Geographic region consisting of states located in the northern part of a country, often characterized by specific climatic, cultural, or political attributes.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from the mean.

Variance

A measure of the spread between numbers in a dataset, expressing how much the numbers differ from the average value.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is true, used as a threshold to gauge the strength of the evidence against the null hypothesis.