The Adjusting Entry for Accrued Interest on a Notes Receivable

question 42

Multiple Choice

The adjusting entry for accrued interest on a notes receivable includes:

• A)a debit to Interest Expense; a credit to Interest Revenue.
• B)a debit to Accrued Interest Receivable; a credit to Interest Revenue.
• C)a debit to Interest Revenue; a credit to Accrued Interest Payable.
• D)a debit to Accrued Interest Receivable; a credit to Interest Payable.

---

Definitions:

Power of Attorney

An official paper authorizing an individual (the agent) to handle legal or financial issues for another person (the principal).

Legal Document

A document that states some contractual relationship or grants some right, enforceable by law.

Contractual Acts

The actions or deeds performed under the terms of a contract or agreement between parties.

Statute of Frauds

A rule of law stipulating that certain categories of agreements must be documented and signed to be legally binding.