On 1 November 2013, EZ Products Borrowed $48 000 on a 5

question 38

Multiple Choice

On 1 November 2013, EZ Products borrowed $48 000 on a 5%, 10- year note with annual instalment payments of $4 800 plus interest due on 1 November of each succeeding year. On 31 December 2014, what will the balance be in the account titled Long- term notes payable?

• A)$48 000
• B)$38 400
• C)$43 200
• D)$4 800

---

Definitions:

Insufficient Capital Formation

A situation where the economy or an entity fails to invest adequately in capital goods, which can limit economic growth and productivity.

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another, typically measured by the gross domestic product (GDP).

Import-substitution Strategies

Economic policies and practices aimed at replacing foreign imports with domestic production.

Economists

Professionals specialized in the study of economics, focusing on the production, distribution, and consumption of goods and services.