Anthony Loaned $2,000 to Cleopatra for One Year at 10

question 57

Multiple Choice

Anthony loaned $2,000 to Cleopatra for one year at 10% interest,all due at maturity.He insisted the terms of the transaction be formalized in a promissory note.In this situation:

• A)The maturity value of the note is $2,000.
• B)Anthony is considered the maker of the note and records the note as an asset in his accounting records.
• C)Anthony is considered the maker of the note and records the note as a liability in his accounting records.
• D)Cleopatra is considered the maker of the note and records the note as a liability in her accounting records.

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Definitions:

Lightning Strike

A lightning strike is a meteorological phenomenon where a discharge of electricity occurs between atmospheric clouds or between a cloud and the ground, often during thunderstorms.

Oil Refinery

An industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, and jet fuel.

Severe

Used to describe something extremely intense, serious, or harsh, often referring to conditions, penalties, or situations.

Public Nuisance

An act or omission that harms, injures, or endangers the public health, safety, peace, comfort, or convenience.