A $43,000,two-Month,10% Note Payable Was Issued on December 1,2016

question 132

Multiple Choice

A $43,000,two-month,10% note payable was issued on December 1,2016.What is the amount of interest expense recorded in the year 2017?

• A)$494
• B)$358
• C)$717
• D)$42,994

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Definitions:

Liability Policy

An insurance policy that provides coverage for legal claims against the insured, typically covering bodily injury and property damage to third parties.

Legally Obligated

Binding under law or contract, requiring a party to act or refrain from acting in a specified manner.

Coinsurance Costs

Expenses that are not fully covered by insurance and must be shared between the insurer and the insured, typically as a percentage.

Increase Of Hazard

A scenario in insurance where the risk of loss becomes greater than what was contemplated at the time the policy was issued.