Are the finance records, ledgers, and journals that compose the company's accounts.

select one:

a. book of accounts

b. cash payments journals

c. cash receipts journal

d. subsidiary ledger


Subject Economics

The correct answer among the above listed choices is letter b. Recording interest expense has an effect to decrease equity.

Interest Expense

-it is the cost of borrowing money to an entity in a specified period of time. Interest is usually running every day but usually paid monthly, quarterly, semiannually, or annually depending on the agreement.

-this is recorded as a non-operating expense in the income statement.

The interest expense formula is:

Interest expense = (Days during which funds were borrowed ÷ 365 Days) x Interest rate x Principal

Interest Expense will usually

increase expenseeither increase liabilities or decrease assetsdecrease owners' equity

For related topic about Differentiate revenues from expenses


Dahil nakabatay sa pamahalaan kung ano ang ibebenta sa isang bansa. command kasi inuutusan sila ng pamahalaan.
A. Book of Accounts is the answer

Do you know the answer?

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