If a Bank Provides Overdraft Protection at a Rate of 12

question 57

Multiple Choice

If a bank provides overdraft protection at a rate of 12% for each $100 (or portion of $100) borrowed when an overdraft occurs, what amount of interest would a customer pay for a $188 overdraft?

• A) $24.00
• B) $22.56
• C) $10.56
• D) $12.00

Distinguish between current assets, fixed assets, current liabilities, and long-term liabilities on the balance sheet.

Understand the differences between the unadjusted trial balance and the adjusted trial balance.

Identify fixed asset accounts that do not have related contra asset accounts.

Acknowledge the significance of working capital and current ratios in financial analysis.