Interest That Has Accrued During the Accounting Period on a Note

question 127

Multiple Choice

Interest that has accrued during the accounting period on a note payable to the bank calls for an adjusting entry consisting of:

• A) A debit to Interest Expense and a credit to Cash.
• B) A debit to Notes Payable and a credit to Interest Payable.
• C) A debit to an asset and a credit to a liability.
• D) A debit to Interest Expense and a credit to Interest Payable.

---

Definitions:

Glossopharyngeal Nerve

A cranial nerve that manages taste and other functions in the tongue and throat.

Paralysis

The loss of the ability to move and sometimes to feel anything in part or most of the body, typically as a result of illness, injury, or poison.

Facial Nerve

The seventh cranial nerve that controls the muscles of facial expression.

Right Side

Referring to the right half or portion of an object, body, or directional orientation.