You are considering applying for one of two credit cards. Credit card "A" has an annual fee of $30 and charges interest of 10%. Credit card "B" has no annual fee, but charges an interest rate of 15%
If you carry an average balance of $500 on your credit card, the lowest total annual expenses you could have with one of these two credit cards would be
A) $50.
B) $80.
C) $75.
D) $90.
Answer: C
Explanation: C)
Card "A" $500 × 0.10 = $50 + $30 = $80
Card "B" $500 × 0.15 = $75
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The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n)
A) capital B) asset C) contra asset D) liability