Omar Wrote a Check for $146

question 10

Essay

Omar wrote a check for $146.89 but recorded it in his checkbook as $156.89. His checkbook balance showed $574.34 What should it show?

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Definitions:

Market Rate

The prevailing rate at which goods, services, or securities are bought and sold in the market.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Amortization

The gradual reduction of a debt or the spreading out of capital expenses for intangible assets over a specific period of time.

Bond Payable

A bond payable is a long-term liability where a borrower agrees to pay back a fixed amount of funds at a future date, along with periodic interest payments.