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:

Boston Police Force

Established in 1854, it is one of the oldest police departments in the United States, serving the city of Boston, Massachusetts.

Calvin Coolidge

The 30th President of the United States (1923-1929) known for his laconic style, conservative policies, and leadership during the Roaring Twenties.

McNary-Haugen Acts

Proposed federal legislation in the 1920s designed to support agricultural prices by buying surpluses and selling them abroad, though never enacted.

Naval Disarmament

The act of reducing or abolishing naval forces and weaponry, often as part of broader disarmament treaties or efforts to prevent escalation of military conflicts.