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:

Total Number

The aggregate count of all items or elements in a dataset or collection.

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1, used in Z-tests and other statistical analyses.

Symmetry

A characteristic where an object or design is made up of exactly similar parts facing each other or around an axis.

Unit of Measurement

A definite magnitude of a quantity, defined and adopted by convention or by law, that is used as a standard for measurement of the same quantity.