A Company Lends a Major Client $90,000 for One Year

question 49

Multiple Choice

A company lends a major client $90,000 for one year at a 7% annual interest rate.Interest payments are to be made twice a year.In July,the company receives an interest payment for January through June.The company would record receipt of the interest payment in which of the following ways?

• A)Debit Interest Receivable for $3,150 and credit Interest Revenue for $3,150.
• B)Debit Cash for $3,150 and credit Notes Receivable for $3,150.
• C)Debit Interest Revenue for $3,150 and credit Cash for $3,150.
• D)Debit Cash for $3,150 and credit Interest Receivable for $3,150.

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Definitions:

Compulsory Psychiatric Treatment

Mandatory treatment or intervention for individuals diagnosed with certain psychiatric conditions, often enforced by law or medical authorities.

Out-of-the-Ordinary

An expression denoting something that deviates from what is typically expected or normal.

Humiliation

The feeling of being put down or made to feel ashamed or embarrassed.

Voyeuristic Tendencies

The inclination towards gaining sexual pleasure from observing others, usually without their consent.