At the End of the Accounting Period, a Company Has

question 150

Multiple Choice

At the end of the accounting period, a company has accrued interest revenue that they will not receive until the next accounting period. The adjusting entry would include a:

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

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Definitions:

Technologically-Inclined

Possessing a natural interest or skill in technology and the use of technological tools and processes.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.

Condition Subsequent

A condition under which the obligations of a contract will end.

Mutual Release

An agreement between two parties in which each side agrees to release the other from any possible claims or liabilities arising from a certain event or situation.