64) Rosewood Company made a loan of $16,000 to one of the company's employees on April 1, 2018 The one-year note carried a 6% rate of interest. What is the amount of Interest revenue that Rosewood would report in 2018 and in 2019, respectively? A) $240 in 2018 and $720 in 2019 B) $720 in 2018 and 240 in 2019 C) $960 in 2008 and $0 in 2019 D) 50 in 2018 and $960 in 2019 65) How is the cash paid to purchase and reported in the statement of cash flows? A) Cash outflow from investing activities B) Cash outflow from financing activities C) Schedule of noncash investing and financing activities D) Cash inflow from operating activities 66) Which of the following statements is true regarding accrual accounting? A) Expenses are recorded when they are paid. B) Revenue is recorded in the period when it is earned and expenses are recorded when they are incurred C) Revenue is recorded in the period after cash is collected D) Revenue is recorded in the period when cash is collected. 67) On January 1, 2019, Friedman Company purchased a truck that cost $48,000. The truck had an expected useful life of 100,000 miles over 8 years and an $8,000 salvage value. During 2020, Friedman drove the truck 18,500 miles. Friedman uses the units-of-production method. What is depreciation expense in 2020? A) $6,000 B) $5,000 C) 57,400 D) $8.880 68) Which of the following terms designates the maximum number of shares of stock that a corporation may issue? A) Par value B) Number of shares outstanding C) Number of shares issued D) Number of shares authorized 69) Which of the following is a disadvantage of a sole proprietorship? A) Personal liability B) Entrenched management C) Excessive regulation D) Double taxation 70) Emir Company purchased equipment that cost $110.000 cash on January 1, 2019. The equipment had an expected useful life of six years and an estimated salvage value of $8,000. Emir depreciate its assets under the straight-line method. What are the amounts of depreciation expense during 2021 and the accumulated depreciation at December 31, 2021, respectively? A) $17,000 and $68,000 B) $17,000 and $51,000 C) $68,000 and $17,000 D) $17,000 and $17,000 Non, merci OK nail