Advanced Accounting Ch. 8 Review

An entry that is the exact opposite of an adjusting entry is known as a(n)

• closing entry

• general journal entry

• opening entry

• reversing entry

A written and signed promise to pay a sum of money at a specified time is called a

• secured note

• loan document

• principal

• promissory note

The interest accrued on borrowed funds is called

• interest expense

• interest receivable

• interest revenue

• prepaid interest

When a note is paid at maturity, the credit is to Cash. The entry debits

• Notes Payable for the maturity value of the note

• Notes Payable for the principle of the note and Interest Payable for the interest due on the note

• Notes Payable for the principle of the note and Interest Expense for the interest due on the note

• Notes Payable for the maturity value of the note and Interest Expense for the interest due on the note

The original amount of a note is called the

• rate of the note

• maturity value

• principle

• term of the note

The date on which the principal of a note is due to be repaid is the

• date of a note

• interest date of a note

• maturity date of a note

• principal date of a note

Expenses paid in one fiscal period but not reported as expenses until a later fiscal period are known as

• accrued expenses

• matching revenue with expenses

• postponed expenses

• prepaid expenses

Obtaining capital by borrowing money for a period of time is called

• debt financing

• issuing a note payable

• establishing a line of credit

• issuing a promissory note

An amount paid for the use of money for a period of time is called

• bank charges

• interest

• principal

• security

If the term of a note is 180 days and the note is dated April 15, it is due September 15.

• True

• False