On December 1,Watson Enterprises Signed a $24,000,60-Day,4% Note Payable as Replacement

question 183

Multiple Choice

On December 1,Watson Enterprises signed a $24,000,60-day,4% note payable as replacement of an account payable with Erikson Company.What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

• A)$0
• B)$80
• C)$320
• D)$960
• E)$160

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Definitions:

Situational Analysis

It refers to the process of identifying internal and external factors that affect an organization's performance, aimed at informing strategic planning.

Strategic Decisions

High-level choices made by an organization's leadership concerning the overall direction and objectives of the company.

Financial Projections

Estimates of a company's future revenues, expenses, and profitability, often used for budgeting, fundraising, and strategic planning.

Franchising

A business model whereby the owner (franchisor) of a product, service, or method obtains distribution through affiliated dealers (franchisees).