David's Loan Loaned $2,000,000 to a Customer on July 1

question 50

Multiple Choice

David's Loan loaned $2,000,000 to a customer on July 1, 2016, with an interest rate of 6% per year. No interest is scheduled to be paid until the loan is due, on June 30, 2017. The customer has not paid any interest yet. What adjustment, if any, is needed by the bank on December 31, 2016?

• A) An increase in cash of $60,000 and an increase in equity and interest revenue of $60,000
• B) An increase in interest receivable of $60,000 and an increase in equity and interest revenue of $60,000
• C) An increase in interest receivable of $120,000 and an increase in equity and interest revenue of $120,000
• D) No adjustment is needed

Distinguish between the materialist and idealist philosophical perspectives.

Analyze the philosophical arguments surrounding the nature of ultimate reality.

Understand the role of science in shaping metaphysical viewpoints.

Explore the relationship between metaphysical theories and their theological implications.

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Definitions:

Total Fixed Costs

Expenses that do not change with the level of production or sales over a short period, including rent, insurance, and salaries.

Activity Level

In cost accounting, this refers to the volume of production or operations, impacting variable costs and potentially influencing budgeting and performance measures.

Contribution Margin

The contribution margin is the difference between sales revenue and variable costs, showing how much revenue contributes to fixed costs and profit.

Variable Costs

Expenditures that fluctuate based on the production levels or the number of sales.