On 1 October, Dalton Corp

question 181

Multiple Choice

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

---

Definitions:

Stock Investments-Long

Investments in stock securities intended to be held for a long-term period for capital appreciation, dividend income, or both.

Common Stock

Equity securities representing ownership in a company, entitling holders to vote and share in the company's profits.

Net Income

The financial term for the total earnings or profit of a company after all expenses and taxes have been subtracted from total revenue.

Investment Portfolio

A group of stocks and/or debt securities in different corporations held for investment purposes.