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    Financial Accounting Information for Decisions Study Set 2
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    Exam 7: Reporting and Analyzing Receivables
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    A Company Borrowed $16,000 by Signing a 120-Day Promissory Note
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A Company Borrowed $16,000 by Signing a 120-Day Promissory Note

Question 111

Question 111

True/False

A company borrowed $16,000 by signing a 120-day promissory note at 12%. The total interest on the note is $640.
$16,000 * 0.12 * 120/360 = $640

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