Franklin Company issued a $40,000 note to the Mercantile Bank on August 1, Year 1. The note carried a one-year term and a 12% rate of interest. How will the adjusting entry, dated December 31, Year 1, to record accrued interest expense impact the elements of the financial statements?
A. Increase liabilities and decrease equity by $2,000
B. Decrease equity and increase liabilities by $4,800
C. Increase liabilities and decrease equity by $1,600
D. Decrease assets and decrease retained earnings by $2,000
Answer: A
You might also like to view...
The nine-cell industry attractiveness competitive strength matrix
A. pinpoints what strategies are most appropriate for businesses positioned in the three top cells of the matrix, but is less clear about the best strategies for businesses positioned in the bottom six cells. B. identifies which sister businesses have the greatest strategic fit. C. is useful for helping decide which businesses should have high, average, and low priorities in deploying corporate resources. D. indicates which businesses are cash hogs and which are cash cows. E. identifies which sister businesses have the highest level of resource fit.
If your supervising attorney wanted to expand his wills and estate practice to include elder law, what types of work might you find yourself doing?
What will be an ideal response?
Which of the following is a common component of document management systems?
A. Classifications schemes B. Inventory system C. Data labels D. Bar codes
What do SMART criteria for successful objective creation include?
A. Specific, metrics, agreed upon, real, time valued. B. Specific, measurable, agreed upon, realistic, time framed. C. Specific, measurable, accurate, real, time valued. D. Specific, metrics, agreed upon, realistic, time framed.