Define each of the following terms: m. Promissory note; line of credit; revolving credit agreement

Q: Define Notes payable.

A: Notes payable is a liability item in the balance sheet of an organization.

Q: Characterize the accounting treatment of notes, including installment notes, issued for cash or for…

A: Introduction Notes are the short term financial instrument, also called as Promissory Notes, that…

Q: The entry to record interest expense on a bank loan payable is a   a. debit to interest expense and…

A: The adjustment entries are made at the end of the year to adjust the revenues and expenses of the…

Q: Select the term that best fits each of the following definitions and descriptions. a. Notes…

A: There are varied terms used in accounting in day-to-day operations. They have a standard meaning…

Q: pre-approved amount of open-end credit, based on a borrower's ability to pay, is called a(n) _____.…

A: There are different types of credit available in the market and it all depends on the agreement…

Q: a debtor and a creditor record the same note, respectively, as a: A. note receivable and note…

A: The debtor refers to the person or an entity who owes some amount from another person. The another…

Q: A note payable can be used to extend the payment due on an account payable. O True O False

A: Solution: A notes payable is used for financing,  it indicates the money owed by issuer.  By issuing…

Q: What is the nature of a “discount” on notes payable?

A: A discount on Notes payable is a contra liability account to the Notes payable account. When the…

Q: Describe the accounting treatment of notes receivable

A: If the note receivable is due within a year, then it istreated as a current asset. They are commonly…

Q: Defining common receivables terms Match the terms with their correct definition.

A:

Q: Define revolving credit agreement

A: Revolving credit agreement: A revolving credit is a lawful guarantee in which a bank agrees to lend…

Q: 3. Should a note receivable from a related party be included in the balance sheet with notes…

A: Balance sheet:   Balance sheet is a summary of assets, liabilities, and equity account that reports…

Q: Which of the following is considered receivables? (select all that applies)  rents   note payables…

A: Receivables are the amounts that are expected to be received by an entity either at present day or…

Q: On a balance sheet what does a line of credit do to the balance sheet does it offset notes payable?

A: A line of credit is an important aspect of accounting in  which the lender and the borrower come…

Q: Which of the following is a secured loan? A - All of these are secured loans B - accounts…

A: A secured loan is a loan that is secured against some collateral security; under this the lender can…

Q: A "receipt on account" results in a credit to: An A/P account Bank An A/R account Capital

A: Receipt on account means, cash received from previously made credit sales.

Q: Identify the normal balance (debit [Dr] or credit [Cr]) for each of the following accounts. Note…

A: Note receivable refers to a note such as promissory note issued by a receiver of loan to issuer of…

Q: If a credit marked as "Upon receipt by the beneficiary of notice from the issuing bank that a draft…

A: The question is based on the banking term and arrangement of credit under different conditions.…

Q: Which of the following is a contra-liability account? a. Notes Payable b. Discount on Notes Payable…

A: Contra liability refers to a liability which is debited for the purpose of offsetting the credit of…

Q: What is the revolving credit arrangements in the exposure draft, Topic 470?

A: The FASB issued an Exposure draft titled debt (470) which aims at simplifying the classification of…

Q: The entry to record accrued interest on a note receivable would include a: debit to Cash credit to…

A: Accrued interest is the amount of interest which is earned by the business but not yet received.

Q: Define each of the following terms: l. Stretching accounts payable; free trade credit; costly trade…

A: Trade credit is the outstanding due arising from sales or purchases made on credit. Accounts Payable…

Q: Identify the normal balance (debit [Dr] or credit [Cr]) for each of the following accounts:…

A:

Q: Credit entry in a nominal amount is

A: Credit entry in a nominal account is:- Cash account      Debit  Income and Gains account   Credit

Q: Does a discounted note payable provide credit without interest? Discuss.

A: Short-term notes payable: Short-term notes payable is a written promise made by the business to pay…

Q: For VAT and Percentage transactions, state when will be the deadline for the remittances

A: VAT is value added tax and it is indirect tax which means tax is paid by consumer of goods or…

Q: notes payable and interest expense.?

A: The Role of accounting is to provide information to investors, creditors, management and…

Q: How do each of the items in a firm’s credit policy—defined to include the credit period, the…

A: Strong credit policy indicates the effectiveness of credit management. The four components of credit…

Q: To record interest earned but not yet received, payee must accrued interest Debit Interest…

A: As per the accrual method of accounting, the income that is earned but not received till the end of…

Q: . Accounts receivable financing is the term used to describe which of the following types of loans…

A: In Accounts receivable financing companies make a collateral of its account receivables to get loan…

Q: Explain the two methods of recording account receivables and credit sales and the PFRS 15…

A: *Two method of recording  account receivable  are: 1. record receivables and sales gross 2 .record…

Q: What is the difference between a note payable and an account payable?

A: Current liability: It can be defined as the financial commitments of a business that are due and to…

Q: Define each of the following terms:i. Credit policy; credit period; credit standards; collection…

A: CREDIT POLICY- ''Guidelines that spell out a way to decide which customers area unit sold-out on…

Q: A credit balance on accruals account indicates?

A:

Q: B. Record the entry for acceptance of promissory note in exchange of accounts receivable from…

A: Introduction: A journal entry is a recording of a commercial transaction in the accounting system of…

Q: Total receivables will remain unchanged for which of the following?*   a. Collection of trade…

A: The firms or individuals who are obliged to pay the firm because of the goods or services acquired…

Q: Give the journal entry for the following transaction. Received a promissory note in payment of an…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Identify the normal balance (debit [Dr] or credit [Cr]) for each of the following accounts. Interest…

A: Interest payable: It can be defined as the charges that are owed by the borrower to the lender.