When calculating interest on a promissory note with the maturity date stated in terms of days, the
a. maker pays more interest if 365 days are used instead of 360.
b. maker pays the same interest regardless if 365 or 360 days are used.
c. payee receives more interest if 360 days are used instead of 365.
d. payee receives less interest if 360 days are used instead of 365.
Ans: c. payee receives more interest if 360 days are used instead of 365.
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Indicate whether this statement is true or false.
Gault Corporation had the following shares of stock outstanding on December 31, 2010: Common stock, $50 par value, 200,000 shares outstanding Preferred stock, 8 percent, $100 par value, cumulative, 20,000 shares outstanding Dividends were in arrears for 2008 and 2009 . On December 31, 2010, total cash dividends of $800,000 were declared. The total amounts payable to preferred stockholders and
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