Use a Day Counting Table to Determine the Due Date

question 163

Multiple Choice

Use a day counting table to determine the due date of the loan if the loan is made on the given date for the given number of days.
-October 29 for 100 days (the due date is in a leap year)

• A) April 20
• B) May 9
• C) February 6
• D) February 5

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of an asset evenly over its useful life.

Accumulated Depreciation

The total depreciation of an asset up to a single point in its life, showing how much value has been diminished over time.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby resetting the temporary accounts for the next period.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders, often used for reinvestment in the business or to pay debt.