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

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Definitions:

General Accounting

The comprehensive process of recording, analyzing, summarizing, and reporting the financial transactions of a business.

Annual Report

A comprehensive report detailing a company's activities and financial performance throughout the preceding year.

Managerial Accountants

Professionals who specialize in providing financial data and analysis to managers within organizations to facilitate informed business decisions.

Performance Report

A document or data set that reviews and evaluates the performance of a project, department, or organization against planned objectives.