If a Bank Statement Includes an EFT Receipt of $200

question 39

Multiple Choice

If a bank statement includes an EFT receipt of $200 for interest,the journal entry to record this reconciling item should include a:

• A)debit to Cash for $200 and a credit to Interest Revenue for $200.
• B)debit to Accounts Receivable for $200 and a credit to Interest Revenue for $200.
• C)debit to Interest Revenue for $200 and credit to Cash for $200.
• D)debit to Interest Expense for $200 and credit to Prepaid Interest for $200.

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Definitions:

Discrete Probability

A branch of probability that deals with occurrences that have distinct and separate values, often involving countable outcomes.

Random Variable

A variable whose numerical values are contingent upon the outcomes of randomness.

Occurrences

Instances or events that happen or take place.

Expected Monthly Production

An estimate of the quantity of goods or services that are anticipated to be produced in a given month.