f a problem is silent to the terms of a note payable, is it considered as a long-term or a short-term payable?
Q: If the proceeds of a discounted note are less than the face amount, the difference is debited to…
A:
Q: Define Short-Term Notes Payable.
A: Definition: Liabilities: The claims creditors have over assets or resources of a company are…
Q: In your own opinion, what would be the out come or consequences if a debtor failed to settle thier…
A: A debt default occurs when the borrower is unable to pay the money back to the lender at the time…
Q: Dishonoring a note means the maker no longer has to pay. True or False?
A: Dishonoring a note means that note has not been paid on the date of maturity. This does not payor no…
Q: Which of the following should not be included in the current liability section of the balance sheet?…
A: The balance sheet is the statement of financial position of the business.
Q: Which of the following is false about the discount on short-term notes payable? * O The Discount on…
A: Notes payable is a written contract which specified a certain payment at a specified data along with…
Q: If a note receivable is discounted with recourse, which is false? a. a contingent liability exists…
A: b. note receivable discounted will be credited EXPLAINATION: Discounting means selling or pledging…
Q: What is a key difference between a short-term note payable and a current portion of a noncurrent…
A: Short term note payable is a debt which is required to be paid within a period of less than one…
Q: Why is issuing a short-term note receivable an investing activity if it's short term and not long…
A: Short term note receivable are the notes that have maturity period of less than 12 months. Long term…
Q: The adjustment will increase the warranty expense, if the actual cost of warranty exceeds the…
A: Answer: Warranty is the promise that is made by business on any product that is being sold.
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: Which of the following statements is TRUE? a. When the stated rate of interest exceeds the…
A: The stated rate is not considered the compounding factor of the time value of money. The effective…
Q: The conversion of the company’s short-term debt into a long-term note payable would decrease both…
A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…
Q: Notes receivable should be stated at amortized cost which is equivalent to its present value which…
A: The Amortised cost is the present value of cash inflows from note receivable using an effective…
Q: hort-term notes payable: O Can replace an account payable O Can be issued in return for money…
A: Short term notes payable is a current liability. It is an obligation to pay a specified sum plus…
Q: When a borrower receives the face amount of a discounted note less the discount, the amount received…
A: Explanation: A note is issued by the borrower to the lender indicating a promise to pay the…
Q: Explain why a non-interest bearing note is effectively an interest-bearing note?
A: solution concept non interest bearing note A non interest bearing note is a note that…
Q: An installment note is a liability requiring a series of payments to the lender. True or False True…
A: Introduction: An instalment note is a legal obligation or liability that requires the lender to…
Q: Which of the following is generally associated with payables classified as A/P? (A) Periodic…
A: Accounts payable means amounts repayable in respect of purchases made from suppliers.
Q: If a problem is silent as to whether a warranty payable is short-term or long-term, will it be…
A: Warranty payable represents a liability account that reports the estimated amount that a company…
Q: A note is honored when it is not fully paid at maturity.
A: Note is a kind of instrument which is used to show any future payment to be received or made. For…
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: discounted note will produce an effective rate which is different than the stated rate. Why does…
A: a discounted note is a short term financial products which allows the company two raise the cash…
Q: A discounted note receivable is an example of a loss contingency? Is it true or false
A: This is a False.
Q: . How is the present value of a non-interest-bearing note computed?
A:
Q: Short-term non-interest-bearing notes receivable are usually recorded at their a. present value b.…
A: Short-term non-interest notes form part of the current assets of the corporation which is going to…
Q: Short-term notes payable: O Can replace an account payable O Can be issued in return for money…
A: Short-term notes payable are considered a negotiable instrument. In this one-party agree to pay a…
Q: Does a Discounted Note Payable provide credit without interest?
A: Discounted Note Payable means that the purchase price(PV) is less than the maturity/face value(FV)…
Q: When the interest is NOT included in the face value of the note, the maturity value is greater than…
A: Face Value is often termed as the nominal value of the asset.The asset can be in the form of shares,…
Q: O The principal amount of a noninterest-bearing note is its future cash flows discounted at its…
A: Non-Interest bearing note is that type of note or bond which does not show interest charge on its…
Q: What is “imputed interest”? In what situations is it necessary to impute an interest rate for notes…
A: Imputed Interest: According to the Internal Revenue Service (IRS), an imputed interest is an…
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: Explain an example of Short-Term Interest-Bearing Notes.
A: Short-term interest-bearing note: The short-term interest-bearing note is a note on which interest…
Q: What types of short-term credit are classified as accrued liabilities?
A: An accrued liability means the expense of the business incurred during a specific period but has yet…
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: Which of the following is not a characteristic of a short-term note payable? Payment is due in less…
A:
Q: What do short-term notes payable represent?
A: Short-term notes payable: short-term notes payable is a written promise made by the business to pay…
Q: What is the theoretical justification of the allowancemethod as contrasted with the direct write-off…
A: Determine the theoretical justification of the allowance method.
Q: Under what circumstances would an accrual
A: Interest on promissory notes: Interest on the promissory note is a return to the person lending the…
Q: Example of liabilities include notes payable and taxes payable True False
A: Liabilities refer to the amount that is payable to the outside entity by the company as a result of…
Q: In your own opinion what would be the outcome or consequences if a debtor failed to settle thier…
A: A debt default happens when the borrower fails to pay the money back to the lender at the time when…
Q: Which of the following terms does not refer to the amount that is paid by the note issuer to the…
A:
Q: Which of the following is not a characteristic of receivables? Select the correct response: The…
A: Option b, c and d are the characteristics of receivables. Option a is the characteristic of an…
Q: What is the gain on extinguishment of the note payable?
A: option b is the answer.
Q: TRUE OR FALSE: An implicit or imputed rate of interest must be used when long-term notes are issued…
A: Imputed Interest: According to the Internal Revenue Service (IRS), an imputed interest is an…
If a problem is silent to the terms of a note payable, is it considered as a long-term or a short-term payable?
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- 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.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.What business circumstance could bring about a short-term note payable created from a purchase?
- If the proceeds of a discounted note are less than the face amount, the difference is debited to Interest Expense. True or FalseIf a note receivable is discounted with recourse, which is false? a. a contingent liability exists b. note receivable discounted will be credited c. liability for note receivable discounted will be credited d. note receivable will be credited upon the settlement of note e. answer not givenWhich of the following terms does not refer to the amount that is paid by the note issuer to the creditors at the end of the life of the note? a. Face value b. Maturity value c. Carrying value d. Principal amount
- 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 trueWhich 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 the theoretical justification of the allowancemethod as contrasted with the direct write-off methodof accounting for bad debts?
- When referring to a note receivable or promissory note a.the note cannot be factored to another party b.the note may be used to settle an account receivable c.the note is not considered a formal credit instrument d.the maker is the party to whom the money is dueIf problem is silent as to the terms of a Warranty Payable, will it be presented in the current liabilities, or the non-current liabilities section of the balance sheet?
