The Nile Group is owed $1,000,000 by Scorpion Enterprises under an 8% note with three years remaining to maturity. The prior year of interest was unpaid. Nile estimates that it is probable that it will only receive amounts equal to a present value of $880,000. The journal entry that O'Hara would make to record this transaction would include an impairment loss of:
A) $0.
B) $80,000.
C) $200,000.
D) $220,000.
C) $200,000.
Loss on impairment (plug) 200,000
Accrued Interest Receivable ($1 million)(8%) 80,000
Note Receivable ($1 million - $880,000) 120,000
Business
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If an organization chooses to implement a control self-assessment program, the auditor should participate primarily as a:
A. Monitor B. Facilitator C. Project leader D. The auditor should not participate in the organization's CSA program because doing so would create a potential conflict of interest.
Business
A company has a collection period of 37.5 days, an inventory period of 93.4 days, and a payables turnover of 48.12. Calculate the cash conversion cycle
A) 82.78 B) 130.9 C) 123.31 D) 85.62 E) 120.31
Business