On November 1,2017,Brownsville Co

question 163

Multiple Choice

On November 1,2017,Brownsville Co.borrowed $80,000 from State Bank and signed a 12%,six-month note payable,all due at maturity.The interest on this loan is stated separately.At December 31,2017,the adjustment for this note includes a(n)

• A)increase to interest expense for $3,200.
• B)increase to notes payable for $1,600.
• C)decrease to cash for $4,800.
• D)increase to interest payable for $1,600.

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Definitions:

Capital

Financial assets or other resources available to individuals or businesses to fund operations, investments, or growth.

Sole Proprietorship

A business structure where a single individual owns and operates the business, bearing unlimited personal liability.

Proprietor's Opportunity

This term is not commonly defined in financial or business glossaries as a standalone concept. It may refer to entrepreneurial opportunities or advantages available to a business owner but lacks a standard definition.

Sole Proprietorships

A business structure where a single individual owns and operates the business, bearing full responsibility for its debts and liabilities.