The Company Has Earned (But Not Recorded) $6,000 of Interest

question 130

Multiple Choice

The company has earned (but not recorded) $6,000 of interest relating to an investment for the year ended December 31,2014.A check for this amount will be received on January 9,2015.How would the company record the related adjusting entry dated December 31,2014?

• A)Debit Cash for $6,000 and credit Interest Revenue for $6,000.
• B)Debit Interest Receivable for $6,000 and credit Interest Revenue for $6,000.
• C)Debit Interest Expense for $6,000 and credit Interest Revenue for $6,000.
• D)Debit Cash for $6,000 and credit Interest Receivable for $6,000.
• E)Debit Interest Revenue for $6,000 and credit Income Summary for $6,000.

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Definitions:

Balanced HR Scorecard

A strategic planning and management system used in an organization, particularly in the HR sector, that translates an organization’s mission and vision into operational objectives and performance measures.

Basic Questions

Fundamental inquiries that explore essential or core aspects of a subject or problem.

Activity-based Measures

Metrics designed to assess specific activities rather than general performance.

Cost Per Hire

The total expenses incurred by an organization in recruiting and hiring a new employee, including advertising, interviewing, and training costs.