A 6-month note is issued on November 1.If no previous accruals have been made,how many months of interest should be accrued at December 31?
A) Six
B) Two
C) Four
D) None

Question

Quizplus · Accepted Answer

A 6-month note is issued on November 1, which means that the note matures on May 1. On December 31, only two months have passed since the issuance of the note, so only two months of interest should be accrued. The remaining four months of interest will be accrued over the next four months until the note matures.

A 6-Month Note Is Issued on November 1