Beta, Inc Had $10,000 of Notes Payable Coming Due on January

question 84

Multiple Choice

Beta, Inc. had $10,000 of notes payable coming due on January 10, 2016. As of December 31, 2015, Beta was negotiating with the lender to extend the due date of the note by two additional years. On January 5, 2016, the company used $2,000 of excess cash to pay off part of the note. On January 8, 2016, the refinancing was completed, the $2,000 payment was refunded and added back to the note balance, and the note was extended for another two years. On Beta's December 31, 2015 balance sheet, which was issued on April 1, 2016, how much of the $10,000 note should be shown as current?

• A) $10,000
• B) $0
• C) $8,000
• D) $2,000

---

Definitions:

Quants

Professionals who specialize in quantitative analysis, often employed in finance to manage and model financial risks.

Cost Centers

Units or divisions within a business to which costs can be allocated for accounting and management purposes.

Divisional Manager

A divisional manager oversees a specific section or division within a larger organization, responsible for its performance, strategy, and management.

Corporate Executives

High-level managers or officers within a corporation responsible for making strategic decisions, guiding direction, and ensuring operations align with company goals.