A Promissory Note Is Executed in June

question 102

Multiple Choice

A promissory note is executed in June.When the note is paid the following January,the payee's entry includes (assuming a calendar-year accounting period and no reversing entries) a

• A)debit to Interest Income.
• B)credit to Cash.
• C)credit to Interest Receivable.
• D)debit to Notes Receivable.

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Definitions:

Labor Taxes

Financial obligations placed on workers or their employers, calculated as a portion of the salaries paid to employees.

Consumer Surplus

The differentiation between the amount consumers are ready to disburse for a product or service and the amount they actually disburse.

Producer Surplus

The difference between the amount that a producer is actually paid for a good compared to the minimum amount they would be willing to accept for the good.

Elasticity of Demand

A measure of how much the demand for a product changes in response to a change in the price of that product.