Start learning →

ACCA Knowledge Level Notes Receivable and Interest — practice questions

Explore 1 free Notes Receivable and Interest questions in ACCA Knowledge Level Financial Accounting. Open each question or exercise to read its content, reference answers and available explanation.

Practise Notes Receivable and Interest with Quill →

Notes Receivable and Interest questions and exercises with answers

Showing questions 1–1 of 1.

Using the convention that every year has 360 days, what is the interest earned on a $1,000 note at 12% per annum for a 60-day term?Read the answer and worked solution →

Worked practice questions

Using the convention that every year has 360 days, what is the interest earned on a $1,000 note at 12% per annum for a 60-day term?

  1. $120
  2. $20
  3. $60
  4. $12
Show answer and solution

Correct answer: B. $20

1. Interest = Principal x Rate x Time. 2. $$\$1{,}000 \times 12\% \times \frac{60}{360} = \$20$$ 3. $120 ignores the pro-rating and applies the full annual rate. 4. $60 and $12 misapply the day fraction, so both are wrong. _Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §4.3.2 "Maturity (Due) Date", p.134_

Open this question →

How to practise

  1. Choose a Notes Receivable and Interest question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Financial Accounting topics

Ratio AnalysisStatement of Cash FlowsThe Mechanics of the Accounting ProcessInventory ValuationAsset, Liability and Equity AccountsFinancial StatementsAccounting EquationBonds Payable