Interest paid (earned) on only the original principal borrowed ( lent ) is often referred to as A. present value B. simple interest C. future value D. compound interest

Q: Explain the initial measurement of, a. short-term notes receivable b. interest bearing long-term…

A: Hi! Thank you for the question. As per the honor code, We are allowed to answer three sub-parts at a…

Q: Under the effective interest method of interest bearing note in lump-sum payment, the interest to be…

A:

Q: Which of the following statements is not correct? Select the correct response: The principal amount…

A: ANSWER: WHEN A NON CASH ASSET IS ACQUIRED AND THE STATED RATE OF INTEREST IS DIFFERENT FROM THE…

Q: he difference between an ordinary annutty and an annulty due is: Multiple Choice an ordinary annuity…

A: Annuity means where regular payment is made at the end of regular period and full amount with…

Q: Describe the repayment process for both a term loan and ab

A: Term loan and bonds are two different types of raising money.

Q: A mortgage is a O short-term amortized loan that is secured by financial assets. O long-term…

A: A mortgage loan is a secured loan in which you borrow money by pledging your property as collateral…

Q: Using the formula Interest = Principal x Rate x Time, if all elements are known except for the…

A: Simple interest rate is most easy and quick method method of interest calculation. Simple interest…

Q: The portion of the selling price paid by the customer at the time of purchase is called O a.…

A: Part amount of selling price is paid by the buyer immediately at time of buying and rest is paid in…

Q: _____ is the opposite of a sinking fund. A. Accrual B. Compounding     C. Amortization D.…

A: Sinking fund is setting aside some money for future possible expenses.

Q: Effective interest amortization method uses which of the following rates to determine interest…

A: Under the effective interest method, the interest is calculated as yield to maturity multiplied by…

Q: which of the followings is considered as long term liability :Select one .a mortgage payable .b…

A: a. mortgage payable is the right answer. Other option are incorrect as they are short term…

Q: nterest is a method of calculating the interest to be paid on a loan by combining the principal…

A: Add on interest refers to the method which is used when the person acquire the loan or the mortgage…

Q: The payment for the use of borrowed money is called: loan maturity value interest principal

A: Borrowed money is the loan taken, which is to be repaid within the terms of the loan contract.

Q: When the total interest charged is linearly proportional to the initial amount of the loan, the…

A: Interest is an additional amount that is charged on deposited amount for a period. Interest is an…

Q: T or F A discount on bond payable is charged to interest expense using the effective interest…

A: Effective interest method - The effective interest method is a technique used to amortize a bond…

Q: Interest expense

A: Interest expense paid on a loan which has prescribed is deductible from gross income of the payor…

Q: The amount added to the principal amount of money using simple interest rate compared to the…

A: Interest is the amount of money a lender or financial institution receives for lending out money.

Q: Which of the following type of loan is best used for temporary shortfalls of income? a. Secured…

A: Loans can be short term loans or long term loans

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: How does the difference between the book value of the debt and the reacquisition price represents…

A: Definition: Early extinguishment debt: When the debt obligations are retired before its scheduled…

Q: Determine whether the following statement is true or false, and explain why. A loan is amortized if…

A: Borrowing by an individual or a corporation is the method through which the individual and the…

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: the interest earned on both the initial principal and the interest reinvested from prior periods is…

A: Compound interest is where interest is calculated on both initial principal and the amount of…

Q: It is the fractional part of the capital or sum invested that is paid for the loan or investment.…

A: 1. The rate of interest is some predecided percentage that is charged on the loan amount or provided…

Q: The discount rate used in a net present value analysis is the​ ________.   A. rate of interest…

A: Net present value is calculated by the deducting the present value of cash outflows from the present…

Q: Compound interest is interest on any past unpaid interest accrued to date. calculated by multiplying…

A: Solution: Compound interest is interest on the original principal plus any past unpaid accrued…

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: At the maturity of a note​ payable, a borrower will pay​ ________.   A. the interest amount only…

A: Note​ payable: Note​ payable is also referred as promissory note. In this, borrower obtains a…

Q: Which of the following is true when the mortgage loan is an amortizing loan? a. At the beginning of…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: Loans and receivable should be measured subsequent to initial recognition at *   a. Amortized cost…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: expense on short term debt should be based on projected balances and short term interest rates.…

A: Basic Concept of accounting

Q: Which of the following is true? Short-term notes payable should be discounted at its present value,…

A: Note principal states the amount that the note signer agrees for paying back when the note matures…

Q: ents plus the interest on the remaining loan. What was the amount of the loan? What was the amount…

A: in this problem payment is made by four equal payment plus interest on remaining amount.

Q: Interest earned on only the original principal amount invested is:                Select one: a.…

A: Interest is a percentage rate which an investor received for its investment for a particular period…

Q: Amortizing the discount on bonds payablea. increases the recorded amount of interest expense.b.…

A:

Q: The interest rate observed in the marketplace for a debt instrument?     Observed interest rate…

A: Interest rate that is observed in the market place for debt instrument is real rate of interest.…

Q: what of the following is the correct calculation for interest cover : a- total debt / interest…

A: Interest coverage ratio is used to find out the ability of a company to pay interest on its debts…

Q: Face value of a note payable plus interest is called O maturity value. O face value. Oproceeds.…

A: Ans. A note payable consists of principal amount and an interest component.

Q: Choose an example of non-current liability. O a. Interest payable O b. Bonds payable Oc. Wages…

A: Following is the answer to the given question

Q: interest expense, which of the following * ?occurs firs Incurring The Interest Expense C Paying The…

A: Accrued interest expense implies interest expense that has been incurred but not yet paid. It is a…

Q: The interest expense recorded on an interest payment date is increased a.by the amortization of…

A: interest expense is increased by Discount on bond payable is credited for amortization. So interest…