Sherman Air Charter Signed a Four-Month Note Payable in the Amount

question 205

Multiple Choice

Sherman Air Charter signed a four-month note payable in the amount of $8,000 on September 1. The note requires interest at an annual rate of 9%. The amount of interest to be accrued at the end of September is

• A) $240.
• B) $60.
• C) $720.
• D) $80.

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Definitions:

Sole Proprietorship

A business structure wherein a single individual owns and operates the business, directly responsible for all debts, obligations, and liabilities.

Personal Assets

Assets owned by an individual, including real estate, bank accounts, investments, and personal property.

Raise Capital

The process by which a company or individual secures money from investors or lenders for business activities or expansion.