Multiple Choice
When a person fills out a deposit slip to deposit \$1,000 in cash into their bank account, how much cash does the person receive at the time of the deposit?
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2. Transaction Analysis
Journal Entries: Debits and Credits
Multiple Choice
Ron borrows \$10,000 from a bank and agrees to repay the loan in full, including interest, with a single payment at the end of one year. How many payments should Ron make on the repayment date?
A
No payments
B
Two payments
C
One payment
D
Twelve payments
Verified step by step guidance1
Understand the problem: Ron borrows \$10,000 and agrees to repay the loan in full, including interest, with a single payment at the end of one year. This means the repayment terms specify one lump-sum payment after one year.
Identify the repayment structure: Since the loan agreement specifies a single payment at the end of one year, there is no mention of monthly or multiple payments. This eliminates options like 'No payments,' 'Two payments,' or 'Twelve payments.'
Clarify the concept of a single payment: A single payment means that Ron will pay the principal (\$10,000) plus the accrued interest in one transaction at the end of the loan term.
Review the options provided: The correct answer aligns with the repayment terms described in the problem, which is 'One payment.'
Conclude the reasoning: Based on the loan agreement and repayment terms, Ron should make one payment on the repayment date, covering both the principal and interest.
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