The Amount of Interest Expense Appearing on the December 31

question 133

Multiple Choice

The amount of interest expense appearing on the December 31, 2015 income statement would be:

• A)$30,000.
• B)$35,000.
• C)$28,500.
• D)$25,000.

Apply the principles of utilitarian ethics in business decisions.

Understand the role of cost-benefit analysis in utilitarianism and ethical decision-making.

Grasp the concept and key factors of corporate social responsibility (CSR) in business practices.

Recognize the significance of corporate actions on stakeholders and the environment, emphasizing corporate social responsibility.

---

Definitions:

Allowance Method

A bookkeeping approach involving the estimation of non-recoverable debts by anticipating uncollectible accounts at the close of every period.

Uncollectible Receivables

Accounts receivable that cannot be collected from customers, often written off as a bad debt expense.

Writing Off

The process of acknowledging that a portion of a debt or an asset has become uncollectible or worthless and removing it from the financial statements.

Income Statement

A summary of the revenue and expenses for a specific period of time, such as a month or a year.