On 1 October 2016,Android Ltd Made a Loan to One

question 85

Multiple Choice

On 1 October 2016,Android Ltd made a loan to one of its customers.The customer signed a 4-month bill for $130,000 at 13%.How much interest revenue did the company record in the year 2017 for this bill?

• A)$2817
• B)$5633
• C)$1408
• D)$4225

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Definitions:

Employer's Payroll Tax

Taxes that employers are required to pay on behalf of their employees, which may include contributions to social security, Medicare, and unemployment taxes.

Permanent

A term used in accounting to describe accounts that are not closed at the end of the accounting period, such as assets, liabilities, and equity accounts.

Temporary

Pertaining to or lasting for a limited time; in accounting, referring to accounts that are closed at the end of each accounting period, such as revenue and expense accounts.

Permanent

Refers to accounts or records in accounting that are not closed at the end of the accounting period and are carried over into the next period.