Use the Following to Answer Questions

question 103

Multiple Choice

Use the following to answer questions
Seattle Company issued a $90,000 face value discount note payable to the First Federal Bank on September 1,2016.The note carried a one-year term and a 4% discount rate.
-As a result of the recognition of interest expense on December 31,2016,

• A)liabilities will increase and retained earnings will decrease.
• B)assets and liabilities will decrease.
• C)assets will increase and retained earnings will increase.
• D)liabilities will increase and assets will decrease.

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Definitions:

Graphical Device

A tool or mechanism used to create, design, or display data and information in a visual format.

Relative Frequency

The ratio of the number of times a particular value or event occurs to the total number of occurrences, used to estimate probabilities in samples.

Hours Worked

The total number of hours spent working by an individual or group in a specific period.

Statistics Students

Individuals engaged in the study of statistics, which includes the collection, analysis, interpretation, and presentation of data.