A 60-Day, 10% Note for $6,000 Dated April 15 Is

question 48

Multiple Choice

A 60-day, 10% note for $6,000 dated April 15 is received from a customer on account. The face value of the note is:

• A) $6,100.
• B) $5,400.
• C) $5,900.
• D) $6,000.

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Definitions:

Cash Dividend

A distribution of a portion of a company's earnings to its shareholders in the form of cash.

Financing Activities

Transactions between a company and its investors or creditors related to equity and debt, including issuing shares and obtaining loans.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at two or more points in time, allowing for comparison and analysis of changes.

Cash Dividend

A payment made by a company out of its profits to its shareholders in the form of cash.