QUESTION 18 Paying the principal on a note plus interest would: increase total liabilities O decrease total assets. o increase owner's equity decrease total assets and increase owner's equity could be correct. QUESTION 19 The journal entry for accrued interest on a note receivable includes: O debiting Interest Expense. crediting Interest Expense. debiting Interest Income. O crediting Interest Income. QUESTION 20 The due date of a promissory note is known as the: O maturity date. O interest note O discount date O issue date QUESTION 21 The basic formula for calculating the interest on a note is O Interest - Principal X Rate x Time, O Interest = (Principal x Time) + Rate Interest - Principal x Rate/Time O Interest = (Principal X Rate) - Time. QUESTION 22 The discount period on a discounted note is: the time between the original date and the discount date. the time between the discount date and the maturity date. the original note period minus 10 days. O the same as the original period of the note. QUESTION 23 compute inventory is: A method that uses average gross profit rate and net sales the retail method. o the gross profit method. the weighted average method. None of the above answers is correct