Use the information from Cen, Inc. to answer questions 35 and 36.
Cen, Inc. reported the following on its December 31, 2010, balance sheet:

-Which statement is true concerning Cen's interest?
A) Central paid a total of $60 interest during 2010.
B) Interest was incurred during the year on more than one note.
C) Interest of $3,200 was accrued and paid during 2010.
D) The 'accrued interest on notes payable' amount relates to the one-year short-term notes payable.

Question

Use the information from Cen, Inc. to answer questions 35 and 36.
Cen, Inc. reported the following on its December 31, 2010, balance sheet:
 
-Which statement is true concerning Cen's interest?
A) Central paid a total of $60 interest during 2010. 
B) Interest was incurred during the year on more than one note. 
C) Interest of $3,200 was accrued and paid during 2010. 
D) The 'accrued interest on notes payable' amount relates to the one-year short-term notes payable.

Quizplus · Accepted Answer

Interest was incurred during the year on more than one note, indicating multiple notes were involved in the interest calculation.

Use the Information from Cen, Inc