TZ Acquired a Machine and Gave 10 Instalment Notes of $2,000

question 60

Multiple Choice

TZ acquired a machine and gave 10 instalment notes of $2,000 each. One note matures on the last day of each of the next 10 semi-annual periods. No interest was specified on the notes or the purchase contract. The going rate of interest for such transactions was 20 percent per annum. The cost of the new machine should be recorded by TZ as (rounded to the nearest dollar) :

• A) $7,710.
• B) $12,290.
• C) $18,000.
• D) $20,000.

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Definitions:

Exception Occurs

Refers to a runtime error in programming that disrupts the normal flow of the program's instructions.

GetMessage

'GetMessage' is generally a method or function in programming that retrieves a message or data. In the context of software libraries or APIs, it commonly refers to obtaining a text message or specific data from a source.

PrintStackTrace

A method used in Java to print a description of the stack trace of an exception to the standard error stream, helping in debugging.

Catch Blocks

Sections in exception handling that define how to respond to specific exceptions caught during the execution of a program.