Lumbers, Inc. lends 3,000 at 12 to an employee on September 1, 2012. The employee agrees to pay the interest and principal in two years. Which of the following will be reported on Lumbers' year ended December 31, 2012 financial statements?
A) The balance sheet will report Interest receivable of 120.
B) The income statement will report Interest revenue of 0.
C) The statement of cash flows will report Cash received for interest of 120.
D) The income statement will report Interest income of 360.
Question 2
The International Accounting Standards Board (IASB) is responsible for setting the International Financial Reporting Standards (IFRS).
Indicate whether the statement is true or false
