The Following Is Selected Information from C Corporation for the Fiscal

question 121

Multiple Choice

The following is selected information from C Corporation for the fiscal year ending October 31, 2014. Based on the accrual basis of accounting, what is C Corporation's net income for the year ending October 31, 2014?

• A) $102,000
• B) $86,000
• C) $76,000
• D) $110,000

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Definitions:

Non-Interest-Bearing Note

A financial instrument or promissory note that does not accrue interest over time, meaning the borrower repays only the principal amount.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from a country's central bank.

Actual Interest Rate

The actual rate of interest earned or paid on an investment or loan, considering compounding and other factors, as opposed to the nominal rate.

Non-Interest-Bearing Note

A type of debt instrument that does not pay interest to the holder, instead being issued at a discount to its redemption value.