Accrued Interest Resulting from a Trade Note Receivable Would Have

question 114

Multiple Choice

Accrued interest resulting from a trade note receivable would have which effect on the categories?

• A)Total liabilities would be increased.
• B)Total assets would be increased.
• C)Owner's equity would be decreased.
• D)None of these answers is correct.

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Definitions:

Tariffs

Taxes imposed on imported goods and services to increase their price and protect domestic industries.

Interest Rates

The price paid for borrowing money, usually expressed as a percentage rate over a period of one year.

Balance Of Trade

The difference between imports from and exports to another country. If imports are larger a trade deficit exists. If exports are larger there is a trade surplus.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and investments, reported in the cash flow statement.