The Amount of Interest Expense Appearing on Big Guy's June

question 1

Multiple Choice

The amount of interest expense appearing on Big Guy's June 30, 2020 consolidated income statement would be:

• A) $36,000.
• B) $57,600.
• C) $62,400.
• D)$63,000.

---

Definitions:

Loanable Funds

The total amount of financial capital available for borrowing in financial markets.

Investment Projects

Initiatives undertaken by individuals, companies, or governments to allocate resources in the expectation of future financial returns.

Usury Laws

Regulations that set maximum interest rates which can be charged on loans, to protect borrowers from excessively high rates.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the principal, paid to lenders over a period.