If a Governmental Entity Issued a Six-Month, $400,000 Note Payable

question 48

Multiple Choice

If a governmental entity issued a six-month, $400,000 note payable at 6% interest three months prior to the fiscal year end to help finance a new fire station, Capital Projects Fund interest payable should be accrued as of the end of the fiscal year in the amount of

• A) $0.
• B) $6,000.
• C) $12,000.
• D) $24,000.

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Definitions:

FTP

File Transfer Protocol, a standard network protocol used to transfer computer files between a client and server on a computer network.

PCV Valve

A spring-loaded valve through which blowby combustion gases are drawn out of the crankcase and into the intake system.

Air Flow

The movement of air, often relevant in contexts such as ventilation, aerodynamics, and HVAC systems, to ensure appropriate air quality and comfort.

Engine Idling

The operation of an engine running at low speed while the vehicle is stationary.