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.

---

Definitions:

Private Goods

Goods that are rivalrous and excludable, meaning one person's consumption prevents another's.

Club Goods

Goods that are excludable but non-rival in consumption, meaning they can have restricted access but one person's use does not diminish availability to others.

Prevented

Describes a situation or action that has been stopped or hindered from occurring, often through intervention or precautionary measures.

Club Good

A type of good that is excludable but non-rivalrous, meaning that access can be restricted but one person's use does not diminish availability for others.