On November 1,2012,EZ Products Borrowed $48,000 on a 5%,10-Year Note

question 67

Multiple Choice

On November 1,2012,EZ Products borrowed $48,000 on a 5%,10-year note with annual installment payments of $4,800 plus interest due on November 1 of each succeeding year.
-How will the note be shown on the balance sheet dated December 31,2012?

• A) $48,000 shown as current liability only
• B) $4,800 shown as current liability, $48,000 shown as long-term liability
• C) $4,800 shown as current liability, $43,200 shown as long-term liability
• D) Entire $48,000 shown as long-term liability

---

Definitions:

Single Mothers

Women who are raising their child or children without the involvement of the children's father, due to various circumstances.

Required Condition

A necessary criterion or condition that must be met for a procedure to be carried out or for a statement to be considered true.

Graphical Device

A tool or technology used to create visual representations of data to facilitate understanding.

Degrees of Freedom

In statistics, the number of independent pieces of information available to estimate another piece of information or parameters in a model.