A Company Owns $400,000 of 7% Bonds That Pay Interest

question 42

Multiple Choice

A company owns $400,000 of 7% bonds that pay interest on October 1 and April 1.The amount of interest accrued on December 31 (the company's year-end) would be:

• A)$4,667
• B)$7,000
• C)$28,000
• D)$14,000
• E)$9,333

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Definitions:

Expectation

A belief or anticipation about the way events, behaviors, or processes should unfold.

Opportunity Presented

A situation or condition that makes it possible to do something that one wants to do or has to do.

Admit

To confess or acknowledge something, often reluctantly.

Sense of Self-efficacy

The belief in one's own ability to succeed in specific situations or accomplish a task.