The Adjusting Entry to Record Interest That Has Accrued on a Note

question 41

Multiple Choice

The adjusting entry to record interest that has accrued on a note payable to the bank will cause an immediate:

• A)Increase in liabilities and reduction in net income.
• B)Decrease in liabilities and reduction in net income.
• C)Decrease in assets and reduction in net income.
• D)Increase in assets and increase in net income.

---

Definitions:

Color Blindness

A visual deficiency where one is unable to differentiate between certain colors due to absence or malfunction of color-detecting components in the eyes.

Inherited

Traits or conditions that are passed from parents to offspring through genes.

Transposable Elements

DNA sequences that can change their position within a genome, sometimes creating or reversing mutations and altering the cell's genetic identity.

Chromosome Region

A specific segment of a chromosome where genes are located.