The Interest Receivable Account for February Showed Transactions Totaling $17,000

question 21

Multiple Choice

The Interest Receivable account for February showed transactions totaling $17,000 and an adjustment of $22,400.

• A) The transactions probably resulted from accruing interest income earned.
• B) The transactions were probably entered on the credit side of the account.
• C) The adjustment was probably for cash receipts of interest receivable accrued in prior months.
• D)The balance in the interest receivable account decreased $5,400.

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Definitions:

Total Revenues

The total income generated from primary activities like sales of goods or services before any expenses are subtracted.

Single Customer

A business model or scenario where a company relies heavily or solely on a single client for its revenue, posing concentrated risk.

Joint Venture

A business venture collaboratively started by two or more entities who maintain their separate identities.

Proportionately Adjusted

A process of adjusting figures or data so that they accurately reflect a proportional relationship within a specified context.