On September 1,2013,Adirondac Marine Supplies Made a Loan to One

question 75

Multiple Choice

On September 1,2013,Adirondac Marine Supplies made a loan to one of its customers.The customer signed a 6-month note for $1,500 at 10%.When the note matured on March 1,2014,the customer settled with the company in full.How much cash did Adirondac collect from the customer?

• A) $1,575
• B) $75
• C) $2,500
• D) $1,500

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Definitions:

High-low Method

An analytical technique used in accounting and finance to estimate fixed and variable costs associated with business operations based on the highest and lowest levels of activity.

Fixed Cost

Costs that do not vary with the level of production or sales, remaining constant regardless of the amount of goods or services produced or sold.

Electricity

A form of energy resulting from the existence of charged particles, used as a power source for machinery and equipment.

Least-squares Regression

A statistical method used to determine the best-fitting line through a set of points by minimizing the squares of the distances of the points from the line.