Discount on note receivable is: Group of answer choices the amount of total interest earned as of the date of discounting. the amount of interest collected in advanced by a financing institution. the amount of interest charged by a financing institution in relation to borrowing arrangement. the amount of interest forgone for the remaining period based

Discount on note receivable is: Group of answer choices the amount of total interest earned as of the date of discounting. the amount of interest collected in advanced by a financing institution. the amount of interest charged by a financing institution in relation to borrowing arrangement. the amount of interest forgone for the remaining period based

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 14E

See similar textbooks

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.
On which notes receivable and notes payable is it necessary to record accrued interest at the end of the period?
Which of the following statement is true about a noninterest-bearing note? Group of answer choices The amount of interest earned is based on the nominal interest when note was received. Interest stated on the face of the note is also the effective interest. The amount of interest earned is based on the effective interest when note was received. The amortization of discount is the amount of interest received during the period.
Interest income recognized for a noninterest bearing note is: Group of answer choices Based on nominal rate of interest when the note was received. Based on market rate of interest at the end of each period. Based on market rate of interest when the note is expected to collect. Based on market rate of interest when the note was received.
Matching Select the term that best fits each of the following definitions and descriptions. a. Notes receivable b. Nontrade receivables c. Net realizable value d. Direct write-off method e. Interest-bearing note f. Maturity date g. Promissory note h. Factoring receivables i. Trade discount j. Present value k. Allowance method l. Sales discount m. Negotiable note n. Non-interest-bearing note o. Assignment of receivables p. Valuation date 11. A method of recognizing the actual losses from uncollectible accounts as expenses during the period in which the receivables are determined to be uncollectible. 12. The amount of cash expected to be received from the conversion of assets in the normal course of business. 13. The sale of receivables without recourse for cash to a third party, usually a bank or other financial institution. 14. Receivables that are evidenced by…
How to calculate the due date, interest and maturity value on both a Traditional Note and Discounted note.
IA - RECEIVABLE FINANCING 4. Identification. This is the sum of the face value of notes receivable and the accrued interest income as of the date of discounting.
A deposit premium can be defined as The initial payment schedule required to institute a premium finance agreement A monetary payment awarded by a court prior to a final judgment The initial premium at the beginning of the policy period A portion of the premium deposited in the bank prior to an installment payment due date
Explain the initial & subsequent recognition of interest-bearing long-term notes receivable.
Question Content Area The journal entry a company makes for the payment of interest, interest expense, and amortization of bond discount is a. debit Interest Expense and Discount on Bonds Payable, credit Cash b. debit Interest Expense, credit Cash c. debit Interest Expense, credit Interest Payable and Discount on Bonds Payable d. debit Interest Expense, credit Cash and Discount on Bonds Payable
The amortization of premium on notes receivable isa. deduction from accrued interest receivableb. an addition to interest incomec. an addition to accrued interest receivabled. a deduction from interest income
Interest on a note receivable typically is due along with the face value at the note’s maturity date. If the end of the accounting period occurs before the maturity date, how do we record interest earned but not yet collected?