Use the Following to Answer Questions

question 73

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.
-The amount of interest expense appearing on the 2016 income statement would be:

• A)$1,200.
• B)$3,600.
• C)$2,400.
• D)$7,200.

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Definitions:

Money Expansion

An increase in the total supply of money in an economy, often by central banking actions.

Rapid Growth

A phase of economic expansion characterized by a significant increase in the GDP, income, and employment.

Inflation Targets

specific and publicly announced goals for the annual rate of inflation that central banks aim to achieve over a particular time frame.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time, indicating improvements in living standards and economic health.