What Adjusting Journal Entry Is Made When an Entity Wants

question 30

Multiple Choice

What adjusting journal entry is made when an entity wants to prepare financial statements,owes interest on a borrowing during the year,but hasn't paid either the loan or the interest?

• A)debit prepaid interest;and credit interest expense
• B)debit interest payable;and credit interest expense
• C)debit interest expense;and credit interest payable
• D)debit interest payable;and credit loans payable

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Definitions:

Labor Problem

Issues arising from the employment relationship, especially concerning workers' rights, working conditions, wages, and employer-employee relations.

Health Care

Refers to the organized provision of medical services to individuals or a community.

Human Resource Management

The strategic approach to the effective management of people in an organization, focusing on policies and systems to improve work performance and culture.

Workplace Governance

The system of rules, practices, and processes by which a workplace is directed and controlled, focusing on balancing the interests of various stakeholders within the company or organization.