A Company Has a Loan That Accrues Interest at a Rate

question 117

Multiple Choice

A company has a loan that accrues interest at a rate of $20 a day.The company pays the interest once a quarter.Which of these would be an accurate adjustment for a month in which no payments are made?

• A)Debit Interest Payable and credit Interest Expense.
• B)Debit Loans Payable and credit Cash.
• C)Debit Interest Expense and credit Interest Payable.
• D)Debit Cash and credit Loans Payable.

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Definitions:

Voluntary Muscle Activity

Muscle movements that are under conscious control, involving skeletal muscles and used to perform deliberate actions.

External Stimuli

Elements or factors outside an individual that can elicit a response or reaction.

Dream Content

The actual material and storyline of a dream as remembered by the dreamer.

Lucid Dream

A dream in which the dreamer is aware that they are dreaming and can sometimes control the dream's events.