ABC Company Signed a 5- Year Note Payable for $80

question 36

Multiple Choice

ABC Company signed a 5- year note payable for $80 000 at 9% annual interest. What is the interest expense for 31 December 2014 if the note was signed on 1 May 2014?

• A)$2 400
• B)$4 800
• C)$7 200
• D)$36 000

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Definitions:

Self-Directed Work Teams

Groups of employees who work together without traditional managerial supervision to achieve specified goals and objectives.

Ownership

Ownership is the legal right or title to an asset or property, giving the owner control over its use and disposition.