[The following information applies to the questions displayed below.]Seattle Company issued a $90,000 face value discount note payable to First Federal Bank on September 1, Year 1. The note had a 4% discount rate and a one-year term.What is the effect of the accrual of interest expense on the elements of the financial statements?
A. Liabilities will increase and assets will decrease.
B. Assets will increase and retained earnings will increase.
C. Assets and liabilities will decrease.
D. Liabilities will increase and retained earnings will decrease.
Answer: D
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Which of the following statement is true?
a. Intangible assets should be recorded at fair market value. b. Intangible assets should be recorded at cost. c. Intangible assets should be recorded at future market value. d. Intangible assets should not be recorded.
Which of the following statements is CORRECT?
A. The present value of a 3-year, $150 annuity due will exceed the present value of a 3-year, $150 ordinary annuity. B. If a loan has a nominal annual rate of 8%, then the effective rate can never be greater than 8%. C. If a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be different. D. The proportion of the payment that goes toward interest on a fully amortized loan increases over time. E. An investment that has a nominal rate of 6% with semiannual payments will have an effective rate that is smaller than 6%.
Which of the following is an intentional tort against real property:
a. nuisance b. battery c. malicious prosecution d. invasion of privacy e. none of the other choices