Drebin Security Systems Sold Merchandise to a Customer in Exchange

question 65

Multiple Choice

Drebin Security Systems sold merchandise to a customer in exchange for a $50,000, five-year, noninterest-bearing note when an equivalent loan would carry 10% interest. Drebin would record sales revenue on the date of sale equal to:

• A) $50,000.
• B) Zero.
• C) The future value of $50,000 using a 10% interest rate.
• D) The present value of $50,000 using a 10% interest rate.

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Definitions:

Analytical Intelligence

The ability to analyze, evaluate, judge, or compare and contrast information, often considered a component of general intelligence.

Creative Intelligence

The ability to use imagination and innovation to solve problems, often linked with the capability to see new perspectives.

Robert Sternberg

An American psychologist known for his work on intelligence, creativity, wisdom, and love, including the development of Sternberg's Triangular Model of Love.

Semanticity

The quality of language in which words are used as symbols for objects, events, or ideas.