When $10,000 of Inventory Is Purchased with a Six-Month Note

question 40

Multiple Choice

When $10,000 of inventory is purchased with a six-month note payable bearing 4% interest, the inventory has a total cost of:

• A)$10,400
• B)$10,000
• C)$10,200
• D)$9,800

---

Definitions:

Stoicism

A philosophy that teaches the development of self-control and fortitude as a means of overcoming destructive emotions.

Good

That which is considered beneficial, positive, virtuous, or morally right.

Bad

Lacking quality or unfavorable; can also refer to moral wickedness or reprehensibility.

Ethical Egoists

Individuals who believe that moral actions are those that maximize one's own self-interest and well-being.