A Company Lends Its CEO $150,000 for 3 Years at a 6

question 34

Multiple Choice

A company lends its CEO $150,000 for 3 years at a 6% annual interest rate.Interest payments are to be made twice a year.The company initially records the transaction by:

• A)debiting Notes Receivable for $150,000 and crediting Cash for $150,000.
• B)debiting assets for $150,000 and crediting liabilities for $150,000.
• C)debiting Cash for $9,000 and crediting Interest Revenue for $9,000.
• D)debiting Interest Receivable for $4,500 and crediting Interest Revenue for $4,500.

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Definitions:

High-Growth Markets

markets characterized by a significant rate of growth, often offering substantial opportunities for investment and business expansion.

BCG Matrix

A strategic business tool designed by the Boston Consulting Group to aid companies in analyzing their business units or product lines based on market growth and market share.

Stars

Employees or units within an organization that perform exceptionally well and are often seen as key contributors to its success.

Stars

In a business context, this term usually relates to products or business units with high market share in fast-growing markets. In astronomy, stars are celestial bodies that emit light and heat from nuclear reactions.