A Credit Card Statement Showed These Transactions During October

question 44

Multiple Choice

A credit card statement showed these transactions during October. The credit card has an interest rate of 6% on the average daily balance. Find the average daily balance,
The finance charge for the month, and the new balance on November 1. [Hint: Remember that
October has 31 days.]

• A)Average daily balance = $286.53; finance charge = $17.19; new balance = $132.66
• B)Average daily balance = $338.66; finance charge = $20.32; new balance = $135.79
• C)Average daily balance = $284.44; finance charge = $17.07; new balance = $132.54
• D)Average daily balance = $288.91; finance charge = $17.33; new balance = $132.80

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Definitions:

Other Comprehensive Income

Elements of income that are not included in net income, including items like foreign currency translation adjustments and unrealized gains or losses on securities.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested into the business.

Comprehensive Loss

Reflects the total net expenses, including all losses and expenses, surpassing the total revenues and gains over a period, thereby showcasing a negative net income on the financial statements.

Other Comprehensive Income

Earnings that are not included in net income on the income statement and relate to gains and losses that have not yet been realized.