Comfort Shoes Received a Promissory Note from a Customer on April

question 86

Multiple Choice

Comfort Shoes received a promissory note from a customer on April 1, 2016.The face amount of the note is $2,000; the terms are 12 months and 8% annual interest.How much total interest revenue will Comfort Shoes recognize for the year ended December 31, 2016?

• A) $ 40
• B) $ 107
• C) $ 120
• D) $ 160

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Definitions:

Appetite

The natural desire to satisfy a bodily need, especially for food, distinct from the physical sensation of hunger.

Complex Carbohydrates

Carbohydrates consisting of long chains of sugar molecules, providing sustained energy and found in foods like grains, fruits, and vegetables.

Drive Reduction

A theory of motivation suggesting that behavior is motivated by the desire to reduce internal drives caused by unmet physiological needs.

Food Deprivation

The state of being kept from food, leading to feelings of hunger and possibly affecting physical and mental health.