When Calculating the Interest on a Note Receivable 365 Days

question 97

Multiple Choice

When calculating the interest on a note receivable 365 days instead of 360 days was used.This error would cause:

• A)the period end assets to be overstated.
• B)the period end liabilities to be understated.
• C)the period's net income to be overstated.
• D)the period's net income to be understated.

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Definitions:

Quantitative Data

This refers to numerical data that can be measured and quantified, representing quantities, amounts, or levels.

Ordinal Data

Data that can be categorized and ranked; however, the intervals between the categories are not necessarily equal.

Nominal Variable

A categorical variable for which different values represent different categories without any intrinsic ranking order.

Interval Data

A type of numerical data involving measurements where both the order and the exact differences between the measurements matter, but there is no true zero point.