For a note receivable that was created on November 1,2015 and is due for repayment on October 31,2016,what is the time fraction needed to compute interest revenue for the year ended December 31,2015?
A) 2/12
B) 2/10
C) 12/12
D) 22/12

Question

Quizplus · Accepted Answer

Since the note was created on November 1, 2015 and the interest revenue needs to be computed for the year ended December 31, 2015, the time fraction would be 2/12 (November and December out of the 12 months in the year).

For a Note Receivable That Was Created on November 1,2015