In October,you Sign a Note for $50,000 in Order to Buy

question 208

Multiple Choice

In October,you sign a note for $50,000 in order to buy new equipment.The note is due in five years,at 8% annual interest.Semiannual interest payments are due each March and September.Assuming no other long-term debt,what is the initial balance in the related long-term debt account?

• A) $46,000
• B) $50,000
• C) $52,000
• D) $54,000

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Definitions:

Spontaneous Remission

The unexpected improvement or cure of a disease or condition that occurs without medical intervention.

Problem-Focused Coping

A coping strategy aimed at addressing the root cause of stress rather than merely alleviating its symptoms.

Personal Control

The extent to which people perceive control over their environment rather than feeling helpless.

Pessimistic Outlook

A tendency to focus on the negatives of a situation or expect unfavorable outcomes.