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Jim Ltd Owes $120 000 on Its Loan and During

Question 18

Multiple Choice

Jim Ltd owes $120 000 on its loan and during the next year must make 12 monthly payments of $1500 including interest.If the interest will amount to $10 800 over the next year,his balance sheet will show:


A) a current liability of $18 000.
B) accrued interest of $10 800.
C) a noncurrent liability of $102 000.
D) a current liability of $7200.

Correct Answer:

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