On August 1,2010,Ace Corporation Accepted a Note Receivable in Place

question 12

Multiple Choice

On August 1,2010,Ace Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $123,965.The note is due in 90 days and has an interest rate of 8%.What would be the total amount collected at the maturity date?

• A)$123,965.00
• B)$2,479.30
• C)$126,444.30
• D)$121,485.70
• E)$133,882.20

Comprehend the components and analysis involved in the policy implementation systems framework.

Understand the definition and characteristics of liabilities in accounting.

Distinguish between different types of liabilities such as current, noncurrent, known, contingent, and estimated liabilities.

Comprehend the conditions under which liabilities are recognized and reported in financial statements.

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Definitions:

Adequate Records

Maintaining sufficient and detailed financial documents to accurately capture a company's transactions, facilitating scrutiny, and ensuring compliance with laws and regulations.

Internal Control

A system of policies and procedures designed by management to safeguard company assets, ensure financial report accuracy, and comply with laws and regulations.

Clearly Establishing

The process of defining or setting precise boundaries, rules, or standards.

Money Orders

Prepaid payment instruments issued for a specified amount, guaranteeing payment to the recipient.