The first step in the due process system used by the FASB in the development of an accounting standard is

a. Exposure Draft

b. Statement of Financial Accounting Standards

c. Preliminary Views

d. Public Hearing

Grays, Inc. has been in business for 20 year

s. On September 1, 2014, it issued a note payable to the bank in

the amount of $900,000, bearing interest at 9%, and payable in three equal annual principal payments of

$300,000. On this date, the bank's prime rate was 8%. The first payment for interest an

d principal was made on

September 1, 2015. At December 31, 2015, Grays should record accrued interest payable of

a. $27,000.

b. $24,000.

c. $18,000.

d. $16,000.

Pepper-Dual's trial balance of income statement accounts for the year ended December 31, 2017 included

the following:

Other information:

Pepper's income tax rate is 30%. Finished goods inventory:

On its multiple

-step income statement for 2017, Pepper

-Dual will report Income from continuing operations

of

a. $68,000.

b. $34,000.

c. $23,800.

d. $ 7,000.