The Adjusting Entry to Accrue Interest on a Note Payable

question 48

True/False

The adjusting entry to accrue interest on a note payable requires a credit to Interest Payable.

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Definitions:

Privity of Contract

A principle stating that contracts cannot bestow rights or impose obligations on anyone who is not a party to the contract.

Sublets

The act of renting out a leased property by the original tenant to a third party, often subject to the landlord's approval.

Quiet Enjoyment

The right of a property owner or tenant to enjoy and use premises in peace and without interference.

Periodic Tenancy

A lease agreement that continues for successive periods until terminated by either party.