On October 1, Dalton Corp

question 64

Multiple Choice

On October 1, Dalton Corp. borrows $100,000 from National Bank, signing a six-month note payable for that amount, plus interest to be computed at a rate of 9% per annum. Indicate all correct answers.

• A) Dalton's liability at October 1 is only $100,000.
• B) The maturity value of this note is $104,500.
• C) At December 31, Dalton will have a liability for accrued interest payable in the amount of $4,500.
• D) Dalton's total liability for this loan at November 30 is $101,500.

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and profit or loss over a specific period.

Inventory Costs

Inventory Costs include all expenses related to acquiring, storing, and managing inventory, including purchase price, warehousing, and logistics.

Goods On Consignment

Items that are held by a seller but still owned by the supplier until sold, at which point the supplier receives payment minus a commission.

Resalable

Resalable refers to goods or products that can be sold again, either in their original condition or after being refurbished or repurposed.