Question

Question 3. Part A. An adjusting entry made to record accrued interest on a note receivable due next year consists of a:

A. debit to Interest Expense and a credit to Cash. B. debit to Interest Receivable and a credit to Interest Revenue. C. debit to Interest Expense and a credit to Interest Payable. D. debit to Interest Expense and a credit to Notes Payable.

Part B. Which of the following is an asset? A. Prepaid Rent B. Service Revenue C. Supplies Expense D. Notes Payable

Part C. If total liabilities decreased by $86000 and stockholders' equity increased by $18000 during a period of time, then total assets must change by what amount and direction during that same period?

A. $86000 increase B. $68000 increase C. $68000 decrease D. $104000 increase

Part D. The best definition of assets is the

A.collections of resources belonging to the company and the claims on these resources. B.cash owned by the company. C.owners' investment in the business. D.resources belonging to a company that have future benefit to the company.

Answer 1

Question 3. Part A. An adjusting entry made to record accrued interest on a note receivable due next year consists of a:

B. debit to Interest Receivable and a credit to Interest Revenue.

Part B. Which of the following is an asset?

A. Prepaid Rent

Part C. If total liabilities decreased by $86000 and stockholders' equity increased by $18000 during a period of time, then total assets must change by what amount and direction during that same period?

C. $68000 decrease

Part D. The best definition of assets is the

D.resources belonging to a company that have future benefit to the company.