The basis point spreads between credit ratings dramatically rise for borrowers of credit qualities less than BBB

Which of the following statements about cost allocation is most correct?

a. The direct method of allocation recognizes services provided by support departments to one another. b. A cost driver is any grouping of overhead costs that must be allocated. c. The reciprocal method of allocation represents a compromise between the direct method and the step-down method. d. A cost pool is the total amount of direct costs incurred by one of the patient service departments. e. None of the above statements are correct.

On October 1, 2015, Frank, Inc. issued a $28,000, 10%, nine-month interest-bearing note. Assume the necessary adjusting entry was made to accrue interest at the end of the fiscal year, December 31, 2015. The entry to record the payment of the note on July 1, 2016 will include a

A. credit to Notes Payable for $30,100 B. credit to Cash for $28,000 C. debit to Interest Expense for $700 D. debit to Notes Payable for $30,100