On October $1,2022$ Big Red Inc. borrowed $$900,000$ from Lincoln Bank. Big Red issued a six$-$month, $10\%$ promissory note. Interest is to be paid at maturity. Big Red's fiscal period is the calendar year. The December $31,2022$ adjusting entry on Big Red's books would include

A$.$ A debit to Interest Expense of $$30,000$

B$.$ A credit to Cash of $$22,500$

C$.$ A credit to Interest Payable of $$22,500$

D$.$ No entry is needed $-$ payment not until next year.

Which of the following is the best definition of a current liability?

A$.$ An obligation payable within one year.

B$.$ An obligation payable within one year of the balance sheet date.

C$.$ An obligation payable within one year or within the normal operating cycle, whichever is longer.

D$.$ An obligation expected to be satisfied with current assets or by the creation of other current liabilities.

A company should accrue a gain contingency only if the likelihood that a liability has been incurred is:

A$.$ More likely than not and the amount of the loss is known

B$.$ Gain contingencies are never accrued

C$.$ At least reasonably possible and the amount of the loss can be reasonably estimated

D$.$ Probable and the amount of the loss can be reasonably estimated