For a Note Receivable That Was Created on November 1,2015

question 136

Multiple Choice

For a note receivable that was created on November 1,2015 and is due for repayment on October 31,2016,what is the time fraction needed to compute interest revenue for the year ended December 31,2015?

• A) 2/12
• B) 2/10
• C) 12/12
• D) 22/12

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Definitions:

Ending Inventory

The cumulative worth of all the goods a company holds at the close of a financial period.

Current Period

Refers to the present financial period under consideration or review, often in the context of accounting or reporting.

Budgeted Production

The anticipated volume of goods a company plans to produce in a certain period, based on demand forecasts and capacity planning.

Units

A measure of quantity or amount used to represent the volume of production, sales, or inventory.