On July 1, 2016, Falcon Company Received a $20,000 Promissory

question 99

Multiple Choice

On July 1, 2016, Falcon Company received a $20,000 promissory note for services from Jordyn Company.The annual interest rate is 5%.Principal and interest are paid in cash at the maturity date of June 30, 2017. ​
The effect on Falcon's financial statements on July 1, 2016 is as follows

• A) Assets increase; owners' equity increases
• B) Assets decrease and owners' equity decreases
• C) Assets decrease
• D) No net change in assets

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Definitions:

Organization's Best Interests

The optimal actions or decisions that promote the success and welfare of an organization.

Unethical Behaviour

Actions that violate moral principles or professional standards, often leading to negative consequences.

Benefit

An advantage or profit gained from something.

Moral Development

Refers to the process by which individuals acquire and apply moral norms and values, often evolving through various stages from basic to more advanced ethical reasoning.