The Interest Charged on a $400000 Note Payable at the Rate

question 53

Multiple Choice

The interest charged on a $400000 note payable at the rate of 8% on a 90-day note would be

• A) $32000.
• B) $17776.
• C) $8000.
• D) $2666.

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Definitions:

ABC

Activity-Based Costing, a method of assigning overhead and indirect costs to specific products or activities based on their use of resources.

Step-Down Method

A method of allocating support department costs to production departments that considers some inter-support-department services in a sequential or step-down fashion. Also known as the sequential method.

Direct Method

A method of preparing the cash flow statement where major classes of gross cash receipts and payments are disclosed.

Least Accurate

Describes the closest to being incorrect or the measurement or statement that has the highest degree of inaccuracy.