The Interest on a $10,000, 6%, 60-Day Note Receivable Is

question 204

Multiple Choice

The interest on a $10,000, 6%, 60-day note receivable is

• A) $680.
• B) $100.
• C) $200.
• D) $300.

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Definitions:

Double-Entry Accounting

An accounting method requiring every financial transaction to be recorded in two accounts, one debit and one credit, to keep the accounting equation balanced.

Debits

Accounting entries that increase assets or expenses or decrease liabilities, equity, or revenue, recorded on the left side of an account.

Credits

Entries on the right-hand side of an accounting ledger, indicating increases in liability, equity accounts, and revenue, or a decrease in assets.

Debit Side

The left side of a ledger account that is used to record increases in assets, expenses, and decreases in liabilities, equity, and income.