On November 1, 2012, the Bagel Factory Signed a $100,000

question 97

Multiple Choice

On November 1, 2012, The Bagel Factory signed a $100,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2013. The Bagel Factory should report interest payable at December 31, 2012, in the amount of:

• A) $0.
• B) $1,000.
• C) $2,000.
• D) $3,000.

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Definitions:

Purchasing Manager

A professional responsible for obtaining goods and services for business operations at the best possible price and quality.

Inventory Holdings

The quantity and value of goods a company has in stock or in a warehouse, ready for sale or distribution.

Marketable Securities

Financial instruments that can be easily sold or converted to cash without a significant loss in value.

Restrictive Policy

A policy designed to limit or control certain actions, often used in the context of monetary or fiscal policy to control inflation or regulate the economy.