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Mac,Incpurchased a Truck on October 1,2011 in Exchange for a 12-Month,9%,$100,000

Question 115

Multiple Choice

Mac,Inc.purchased a truck on October 1,2011 in exchange for a 12-month,9%,$100,000 note.What effect does the October 31,2011 adjusting entry for interest have on the company's total liabilities?


A) increase
B) decrease
C) no effect

Correct Answer:

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