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- 29.When a note is non-interest-bearing, the maturity value equals the _____. a.principal b.bank discount c.rate d.termWhen a borrower receives the face amount of a discounted note less the discount, the amount received is known as a.the note deferred interest b.the note principal c.the note proceeds d.the note discountWhat is a key difference between a short-term note payable and a current portion of a noncurrent note payable?
- The interest on a non-interest bearing note is equal to a. The excess of the face value over the present value. b. The excess of the present value over the face value. c. The excess of the present value over the market value of the note. d. Zero.IA-Receivable Financing 3. Identification. If the proceeds from discounting is less than the carrying value of the Notes Receivable, an interest expense is recorded. This refers to what type of discounting with recourse?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.
- If the proceeds of a discounted note are less than the face amount, the difference is debited to Interest Expense. True or FalseWhich of the following statements is correct? If the note is issued at a discount, the interest income to be recognized every period is a. Either higher or lower than the amount of cash received for interest depending on the amount of the discount b. Equal to the amount of cash received for interest c. Lower than the amount of cash received for interest d.Short-term non-interest-bearing notes receivable are usually recorded at their a. present value b. net realizable value c. principal value d. maturity value
- Calculate the simple interest note proceeds. calulate the simple discount note proceeds.The proceeds of a discounted note are equal to the face value of the note. True FalsePlease answer ASAP thanks in advance TRUE or FALSE. The proceeds from discounting is computed by deducting the discount from the carrying value of the notes receivable