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

question 60

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 Fenstermaker first gives Ace the note,Fenstermaker should record ________.

• A)a note payable of $2,000
• B)a note receivable of $2,000
• C)a note payable of $2,060
• D)a note receivable of $2,060

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Definitions:

Inelastic Supply

A situation where the quantity supplied of a good or service is not significantly influenced by changes in price.

Quantity Supplied

The total amount of a product that producers are willing and able to sell at a given price over a specified period.

Elastic

Describes a situation in economics where the quantity demanded or supplied of a good or service greatly changes in response to changes in price.

Porter's Five Forces

A framework for analyzing a company's competitive environment, including threats from new entrants, bargaining power of suppliers and customers, threats from substitute products or services, and competitive rivalry.