Alfred Corp

question 54

Short Answer

Alfred Corp. accepted a $12,000 note on July 15, with terms of 14% for 60 days. Alfred discounted the note on July 28, at the Victory Bank at 10%. What proceeds did Alfred receive? Use ordinary interest.

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Definitions:

Accounting Degree

An academic degree that prepares students for careers in accounting, focusing on areas like auditing, tax, financial reporting, and management accounting.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenue.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs necessary for a business to operate.

Economic Profit

The distinction between gross revenue and total expenditures, inclusive of both explicit and latent costs.