The Amount of Interest Payable (Assuming an Outstanding Balance of $4,000,000

question 45

Multiple Choice

The amount of interest payable (assuming an outstanding balance of $4,000,000 of bonds) that should be included on the balance sheet for the debt service fund of the City of Russell at June 30, 2015 is

• A)$ -0-.
• B)$168,000.
• C)$210,000.
• D)$420,000.

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Definitions:

Stroop Effect

A demonstration of cognitive interference where the brain's reaction time slows down when the color of a word doesn't match the name of the color.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic or decision.

Availability Heuristic

A cognitive shortcut based on easily recalled examples when judging a specific area, notion, practice, or decision-making process.

Base-Rate Information

This term relates to how often an event occurs within a general population.