On December 31, 2007, Installment Notes Receivable Totaled $54,000

question 40

Multiple Choice

On December 31, 2007, installment notes receivable totaled $54,000. Of this amount $40,000 will be collected in 2008. The remainder will be collected in 2009. How should these notes be classified on the balance sheet?

• A)Current assets are $40,000 and long- term assets are $14,000.
• B)Current assets are $40,000 and long- term assets are $54,000.
• C)Current assets are $0 and long- term assets are $54,000.
• D)Current assets are $54,000 and long- term assets are $0.

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Definitions:

Public Good

An item or service offered to every person in a society for free, supplied by either governmental bodies or private entities or people, without any intention of making a profit.

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