Anthony Loaned $2,000 to Cleopatra for One Year at 10

question 94

Multiple Choice

Anthony loaned $2,000 to Cleopatra for one year at 10% interest, all due at maturity. He insisted the terms of the transaction be formalized in a promissory note. In this situation:

• A) The maturity value of the note is $2,000.
• B) Anthony is considered the maker of the note and records the note as an asset in his accounting records.
• C) Anthony is considered the maker of the note and records the note as a liability in his accounting records.
• D) Cleopatra is considered the maker of the note and records the note as a liability in her [his] accounting records.

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