12.4 Which of the following is not a characteristic of a short-term note payable?A. Payment is due in less than a year.B. It bears interest.C. It can result from an accounts payable conversion.D. It is reported on the balance sheet under noncurrent liabilities.

12.4 Which of the following is not a characteristic of a short-term note payable?A. Payment is due in less than a year.B. It bears interest.C. It can result from an accounts payable conversion.D. It is reported on the balance sheet under noncurrent liabilities.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 13MC: Which of the following is not a characteristic of a short-term note payable? A. Payment is due in...

See similar textbooks

Related questions

Q: Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to…

A: Given Principal is $7100 Rate is 10.4% Interest $225.

Q: written promise to pay a specified amount on a definite future date within one year or the company’s…

A: The short term notes payable is the note that promise the creditor to pay the amount specified…

Q: n finance, the expression "amortize" is used to denominate a financial process by means of which a…

A: False

Q: Under what conditions would the simple interest rate, or APR (remember rSIMPLE APR), equal the…

A: Since, two dissimilar questions were posted together, the answer for the first question is only…

Q: 16. Statement I: The interest rate to be used to compute for the interest income on a long-term…

A: Market interest rate fluctuates over the life of the bond and reflects the market sentiments and is…

Q: Statement 1: Companies record and report long-term notes receivable on a discounted basis.…

A: Let's Understand some basics Notes Receivable are the promissory notes given by receivables of the…

Q: 5.) A partial payment is made on the date indicated, Use the United States rule to determine the…

A: Maturity Value- The maturity date is the day on which the principal amount of a security, such as a…

Q: Question 9 Notes payable paid within a year should be classified as a long term liability. True…

A: Liabilities payable with in a time period of one year are considered as current liabilities and…

Q: Statement I: If, at the reporting date, the credit risk of a receivable has not increased…

A: Option (c) i.e. 1 out of 3 statements are incorrect, is the correct answer.

Q: M makes a note payable to the order of P for 10,000 and delivers the same to P. Without the consent…

A: under the Negotiable Instruments Law, when an alteration is made by a party, the effect of such…

Q: Determine the maturity date of the loan (not in a leap-year). Loan Date Time of Loan (days)…

A: Loan date = Feb 8 Loan duration = 110 days As it is not a leap year, Feb has 28 days

Q: A long-term note payable with no stated rate of interest should be

A: No Interest Bearing Note- These are notes issued at a deep discount having maturity value at its…

Q: Current liabilities are due a.but not payable for more than one year b.and receivable within one…

A: Current liabilities means the liabilities which will be paid with in short period of time , one year…

Q: Statement 1: A notes payable wherein its fair value exceeded its face amount can tell us that it was…

A: Notes payable: It implies a written promissory note that is borne by the bearer and it contains a…

Q: Which of the following statements is true relating to amortization of discount on notes receivable?…

A: Solution: "Amortization of discount increases the note's stated interest and decreases the note's…

Q: 1. Which of the following statements is incorrect? a Notes payable are initially recognized at fair…

A: Notes Payable is an obligation that is supposed to be settled in the future and includes a portion…

Q: long-term note payable with no state O recorded at the face value D discounted to its present value…

A: Ans. A long-term note payable without any stated rate of interest is a long-term liability to be…

Q: Which of the following depicts the process of computing the present value of an interest-bearing…

A: The question is related to present value of an interest-bearing term note with an unrealistic…

Q: C. What is the net realizable value of the Accounts receivable at December 31 20x1?

A: Net realisable value of receivables is the amount of receivables after adjustment of credit loss.

Q: True or false When a non-interest-bearing note has been issued at a discount or premium and is fully…

A: Non-interest bearing note are those liabilities of the entity which are to be repaid after certain…

Q: account are some incomes, such as, temporarily monitored

A: Income temporarily monitored are cash received in respect of certain income not actually accrued.

Q: How does an installment note differ from a note for which the principal is paid as a single amount…

Q: ________________ is a written promise to pay a specified amount on a definite future date within one…

A: Answer: Option A is the Correct answer i.e. Short-term note payable.

Q: Statement I: In determining the interest income for the 2nd year of non-interest-bearing notes…

A: Answer:- Interest income definition:- Interest income can be defined as the difference between the…

Q: Which obligations are classified as current liabilities even if they are due to be settled after…

A: Current liabilities are the obligations that an entity has to pay within a period of one year or…

Q: True or false 1. The trend of the balance of the discount on note payable during the term of the…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: What will be the value of the general receivables provision? £ 906 What will be the irrecoverable…

A: Balance at receivable in account at the year end £ 54,500 Special Provision of 9200…

Q: If the face value of a notes receivable is greater than its present value, which would most likely…

A: Solution: where face value is higher than present value, that means that note is issued at a…

Q: What accounts should be debited and credited by the payee to record the dishonored note receivable?

A: Hi student Since there are multiple questions, we will answer only first question.

Q: # 45 A type of short-term loan where the borrower sells its accounts receivables to the lender at a…

A: A bond refers to a financial instrument issued by the companies which contains fixed coupon rate on…

Q: 11.When a note receivable is discounted with recourse,

A: When notes receivable discounted with recourse, company accepts to pay the financial institutions…

Q: 26) The cash payment or PMT for a Note Payable (installment loan) includes only interest on the…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: 11.11 At 1 January 20X1, there was an allowance for receivables of $3,000. During the year, $1,000…

A: The following calculations are done as per the given information.

Q: 8. Suppose that the balance of a certain credit card is P43,744.53. The credit card company charges…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Statement 1: Amortizing the discount causes the carrying amount of the liability to gradually…

A: Amortizing of discount on notes payable or discounting the notes payable is done to arrive at the…

Question

12.4 Which of the following is not a characteristic of a short-term note payable?
A. Payment is due in less than a year.
B. It bears interest.
C. It can result from an accounts payable conversion.
D. It is reported on the balance sheet under noncurrent liabilities.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is true of a maturity date? A. It must be calculated in days, not in months or years. B. It is the date when principal and interest on a note are to be repaid to the lender. C. It is the date of establishment of note terms between a lender and customer. D. It is not a characteristic of a note receivable.
2.Which of the following statements is valid? a. Net accounts receivable is not affected by a recovery of an account previously written off. b. A three year, non-interest bearing promissory note is initially recorded in the accounts at its face value. c. When individual customers' accounts have credit balances of material amounts, these amounts must be deducted from the debit balance in other customers' accounts in the statement of financial position. d. When the rate stated on a note is greater than the prevailing market rate of interest for similar obligations, the present value of the note at initial recognition is greater than its face value.
60. If the face value of a notes receivable is greater than its present value, which would most likely appear in the journal entry in the amortization? a. Cr. Premium on Notes Receivable b. Dr. Discount on Notes Receivable c. Dr. Premium on Notes Receivable d. Cr. Discount on Notes Receivable
6. Determine the maturity date of the loan (not in a leap-year). Loan Date Time of Loan (days) Maturity Date February 8 110
1. Which of the following note shall be discounted to get the initial measurement? A. Interest bearing note due in 3 years B. Note due in 12 months C. Non-interest bearing note due in 3 years D. Note due in 6 months 2 Which is true concerning the presentation of receivables in the statement of financial position? A. Non-trade receivable is presented as a non-current asset B. Only trade accounts receivable and trade notes receivable shall be presented as "Trade and Other Receivable" C. Trade and Non-trade Receivables are shown separately in line with materiality and aggregation principle D. Trade and Non-Trade Receivables which are currently collectible shall be presented as one line item called "Trade and Other Trade receivables"
44 _________________ is a written promise to pay a specified amount on a definite future date within one year or the company’s operating cycle, whichever is longer. a. Short-term note payable b. Short- term notes receivables c. Long-term note receivables d. Long-term notes payable
Interest on a note payable can be calculated by multiplying the amount owed by the interest rate by the fraction of year that represents the time elapsed since borrowing. a. True b. False
1. What is the correct accounts receivable – trade account balance? 2. What is the carrying value of the accounts receivable –trade? 3. What is the correct bad debt expense for the year assuming that the allowance for bad debts based on aging of trade receivables at the beginning of the year was at P5,400?
What is a key difference between a short-term note payable and a current portion of a noncurrent note payable?
Define each of the following loan terms, and explain how they are related to one another: the prime rate, the rate on commercial paper, the simple interest rate on a bank loan calling for interest to be paid monthly, and the rate on an installment loan based on add-on interest. If the stated rate on each of these loans was 5%, would they all have equal, effective annual rates? Explain.
1. How much should be reported as bad debts expense for the year ended December 31, 2020? 2. What is the net realizable value of the Accounts receivables on December 31, 2020?
1. How much is the correct outstanding balance of accounts receivable as of December 31, 2022? 2. How much is the correct doubtful accounts expense? a. The recorded allowance for doubtful accounts for the year ended December 31, 2022 is understated by? b. The net realizable value of accounts receivable as at December 31, 2022 is?