discounted note will produce an effective rate which is different than the stated rate. Why does this occur
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- A discounted note will produce an effective rate which is different than the stated rate. Why does this occur?
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- When the market interest rate on a short-term note receivable is greater than the stated rate, ________. Group of answer choices the present value of the note is greater than its stated value the stated value of the note is greater than its face value the stated value of the note is less than its face value the present value of the note is less than its face valueWhich of the following is not true about the discount on short-term notes payable? a. The Discount on Notes Payable account should be reported as an asset on the balance sheet. b. When there is a discount on a note payable, the effective interest rate is higher than the stated discount rate. c.The Discount on Notes Payable account has a debit balance. d. Discount on Notes Payable is a contra account to Notes Payable.What is “imputed interest”? In what situations is it necessary to impute an interest rate for notes receivable? What are the considerations in imputing an appropriate interest rate?
- Which of the following is false about the discount on short-term notes payable? The Discount on Notes Payable account has a debit balance. The Discount on Notes Payable account should be reported as an asset on the balance sheet. If there is a discount on notes payable, the effective interest rate is higher than the stated discount rate. All of these are truePlease clarify the difference between the stated interest rate on notes receivable and the market interest rate, as well as premiums and discounts...? I'm stumped as to why that notion is eluding me.What is the difference between cap rate and discount rate? Explain in detail and no plagiarism .
- The proceeds of a discounted note are equal to the face value of the note. True FalseNotes receivable should be stated at amortized cost which is equivalent to its present value which may be its face or discounted value for long term interest bearing and or long term interest bearing with unreasonably low interest rate. TRUE OR FALSEWhat is the impact of changes in interest rates on the accounting for variable-rate promissory notes?
- The concept that supports the discounting of notes to their present value is: time value of money matching form over substance amortizationWhenever payment and compounding periods differ from each other, it is recommended to compute the effective interest rate per payment period.Give reasons why?How is the receivables turnover ratio measured? What does this ratio indicate? Is a higher or lower receivables turnover preferable?
