Ace Electronics Accepted a Promissory Note from Fenstermaker,who Promised to Pay

question 108

Multiple Choice

Ace Electronics accepted a promissory note from Fenstermaker,who promised to pay Ace $2,000 plus 6% interest at the end of six months.When Ace first accepts the note,it should record interest receivable of ________.

• A)$120
• B)$0
• C)$60
• D)$240

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Definitions:

Hourly Wages

Payment to workers based on the number of hours worked, typically associated with non-salaried employees.

Cost Of Goods Manufactured Statement

A financial document that calculates the total cost of goods produced within a specific period, including direct materials, direct labor, and overhead.

Income Statement

An accounting statement that details the performance of a firm (revenue minus expenses) for a specific period of time.

Overhead

All ongoing business expenses not directly attributed to creating a product or service.