On 1 October 2017,Android Ltd Made a Loan to One

question 25

Multiple Choice

On 1 October 2017,Android Ltd made a loan to one of its customers.The customer signed a 9-month bill for $100,000 at 14%.Calculate the total interest earned on the bill.

• A)$3501
• B)$1167
• C)$10,500
• D)$14,000

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Definitions:

Direct Cash Flows

A financial statement that provides data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Triple Bottom Line

A sustainability-based accounting framework that evaluates a company's performance in terms of its environmental, social, and financial impacts.

Limited Liability

A legal structure where a company's owners are protected from personal responsibility for its debts or liabilities.

Business Organizations

Various forms of entities set up to conduct commercial enterprise, including corporations, partnerships, and sole proprietorships.