The Penetration of Mobile Phones Is Changing the Way We

question 16

Multiple Choice

The penetration of mobile phones is changing the way we do business because:

• A) The cost of phones is low
• B) Increasing sophistication of phones
• C) We can send text instead of voice
• D) People are more connected and able to share more information

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, represented as an expense on the income statement, affecting net income.

Adjusting Entry

Journal entries made at the end of an accounting period to update income and expense accounts so that the income statement reflects the revenues earned and expenses incurred during the period.

Interest-Bearing Note

A debt security that pays interest to the holder at regular intervals until maturity, at which point the principal is repaid.

Proceeds

The total amount of money received from a transaction before any deductions are made.