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Financial Accounting MCQs

If a company using accrual accounting has quarterly (end of quarter) interest payments on a bond, what will they recognize at the end of the first month of the quarter?

Debit-Interest Payable; Credit-Interest Expense

Debit-Interest Expense; Credit-Current Portion of Long Term Debt;

Debit-Interest Expense; Credit-Interest Payable;

Debit-Current Portion of Long Term Debt; Credit-Interest Expense

Answer

Correct Answer: Debit-Interest Expense; Credit-Interest Payable;

Explanation:

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