A Dishonored Note Means the Payee's Entry Includes a

question 164

Multiple Choice

A dishonored note means the payee's entry includes a

• A) credit to Accounts Receivable.
• B) debit to Interest Expense.
• C) debit to Notes Receivable.
• D) credit to Interest Income.

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Definitions:

Account Payable

Obligations or debts a company owes to suppliers or creditors for goods or services received that have not yet been paid for.

Increases Liabilities

Situations or transactions that result in a rise in the claims against a company’s assets.

Decreases Assets

Refers to any operation or transaction that results in a reduction of the value of assets owned by a business.

Account Receivable

Money owed to a company by customers who have purchased goods or services on credit.