At the End of the Year,a Company Has a Short-Term

question 136

Multiple Choice

At the end of the year,a company has a short-term note payable outstanding that was entered into earlier in the current year.What accounts relating to the note payable will be reported on the financial statements at the end of the year?

• A)Short-term notes payable will be reported on the balance sheet and interest payable will be reported on the income statement.
• B)Interest receivable will be reported on the balance sheet.
• C)Short-term notes payable and interest payable will be reported on the balance sheet.
• D)Short-term notes payable,interest payable and interest expense will be reported on the balance sheet.

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Definitions:

Consumption

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Total Cost

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Utility Function

A mathematical expression that measures a consumer's satisfaction or happiness from consuming various bundles of goods and services.