ABC Company Signed a One-Year $12,000 Note Payable at 8

question 92

Essay

ABC Company signed a one-year $12,000 note payable at 8% interest on May 1,2012.If ABC only adjusts their accounts once a year at year-end,how much interest expense must be accrued on December 31,2012?
A) $960.
B) $320.
C) $640.
D) $474.

• A) $960.
• B) $320.
• C) $640.
• D) $474.

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Definitions:

Enterprise Resource Planning

A suite of integrated applications that an organization uses to collect, manage, and interpret data from many business activities.

Decision Support System

A computer-based system that helps in making informed decisions by analyzing large volumes of data.

Office Support System

Integrated software solutions designed to facilitate and automate the day-to-day operations and tasks of an office.

Management Information System

An information system designed to meet the management and decision-making needs of an organization, integrating data from various departments for analysis.