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:

Enslaved Africans

Describes Africans who were forcibly taken from their homeland and subjected to slavery, primarily in the Americas and Europe, from the 16th to the 19th centuries.

The Americas

A landmass comprising the continents of North America and South America, including associated islands and regions, known for its diverse cultures, languages, and histories.

Chesapeake Planters

Wealthy landowners in the Chesapeake Bay area during the colonial and early United States periods, known for cultivating tobacco as a cash crop.

African Slaves

Enslaved people brought from Africa to the Americas and other places through the transatlantic slave trade, used for labor from the 16th to the 19th century.