The Journal Entry to Record Accrued Interest on a Short-Term

question 31

Multiple Choice

The journal entry to record accrued interest on a short-term note payable must include a debit to:

• A)Interest Payable and a credit to Cash.
• B)Interest Expense and a credit to Cash.
• C)Interest Expense and a credit to Interest Payable.
• D)Interest Payable and a credit to Notes Payable.

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Definitions:

Chamber of Commerce

A local association to promote and protect the interests of the business community in a particular place.

Financial Services

Industries that manage money, including banks, credit unions, credit-card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds, and some government-sponsored enterprises.

Networking

The act of connecting with individuals or groups to exchange information and develop professional or social contacts.

Trade Show

An exhibition where companies in a specific industry showcase and demonstrate their new products and services.