The Entry to Record Accrued Interest on a Note Receivable

question 163

Multiple Choice

The entry to record accrued interest on a note receivable at year end includes a debit to:

• A) Interest Revenue.
• B) Interest Receivable.
• C) Note Receivable.
• D) Cash.

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Definitions:

Probability Of Occurrence

The likelihood of an event happening, measured on a scale from 0 (impossibility) to 1 (certainty).

Span Of Time

The duration or extent between two points in time.

Poisson Random Variable

A type of random variable that represents the number of events occurring in a fixed interval of time or space, under the condition that these events happen with a known constant mean rate and independently of the time since the last event.

Probability Distribution

A probability distribution is a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.