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.

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Definitions:

Nonorganic Failure To Thrive

Slowed or arrested physical growth with no known medical cause, accompanied by poor developmental and emotional functioning.

Neglect

The failure to provide for a dependent's basic needs, including physical, emotional, and educational necessities.

Nonorganic Failure To Thrive

A condition observed in infants and young children who do not gain weight or grow as expected, without any underlying organic disease.

Heroin

An illegal, highly addictive opiate drug processed from morphine and used as a narcotic analgesic.