Given a 360-Day Year, the Interest Expense on a $2,000

question 95

Multiple Choice

Given a 360-day year, the interest expense on a $2,000, 6%, 90-day promissory note payable is: (Do not round any intermediate calculations.)

• A) $30.
• B) $120.
• C) $90.
• D) some other amount.

---

Definitions:

Fraud Risk Factors

Circumstances or events that increase the risk of fraud within an organization or its financial reports.

Quality Of Information

Pertains to the degree of accuracy, reliability, and relevance of data or information, ensuring it is fit for making decisions.

Predictive Value

The capability of financial information to help users make accurate forecasts about future events or outcomes.

Confirmatory Value

The aspect of relevant financial information that helps users of financial statements confirm or correct prior expectations.