Your Business Purchased a Certificate of Deposit on April 1

question 27

Multiple Choice

Your business purchased a certificate of deposit on April 1 that will pay $90 interest three months from that date.On April 30,which of the following adjusting journal entries would be made?

• A)Debit Interest Receivable for $90; credit Interest Revenue for $90.
• B)Debit Interest Revenue for $60; credit Interest Receivable for $60.
• C)Debit Interest Receivable for $30; credit Interest Revenue for $30.
• D)Debit Interest Revenue for $30; credit Interest Receivable for $30.

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Definitions:

Unintended Impact

Outcomes or effects that were not anticipated or planned for, often occurring as a result of an action or decision.

Presidential Candidates

Individuals officially running for the office of the presidency in a country, participating in electoral campaigns to gain support from the electorate.

Flexibility

The willingness or ability to adapt or yield to changing conditions or circumstances without negative effect.

Innovation

The process of creating new ideas, products, or methods that bring about significant improvements or novelty.