When 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 discount
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A: option b is the answer.
When a borrower receives the face amount of a discounted note less the discount, the amount received is known as
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- What is a key difference between a short-term note payable and a current portion of a noncurrent note payable?Which of the following accounts are used when a short-term note payable with 5% interest is honored (paid)? A. short-term notes payable, cash B. short-term notes payable, cash, interest expense C. interest expense, cash D. short-term notes payable, interest expense, interest payableWhich 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.
- When a business borrows money from a bank on a non-interest-bearing note, how are the bank discount and proceeds calculated?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.When the maker pays the full amount due on note receivable on the maturity date it is called as. a. Dishonor of Note receivable b. Un matured payment of Note receivable. c. Honor of Note receivable d. Disposal of Note receivable
- Please 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 receivableIf the proceeds of a discounted note are less than the face amount, the difference is debited to Interest Expense. True or False4. A note receivable bearing a reasonable interest rate is sold to a bank with recourse. The note receivable discounted account was appropriately credited. The note receivable discounted account should be reported as a. contra asset account for the proceeds from the discounting transaction b. contra asset account for the face amount fo the note receivable c. liability account for the proceeds from the discounting transaction d. liability account for the face amount of the note
- When the due date for a promissory note is stated in terms of days, to determine the maturity date we have to exclude. a. The date when the note is issued b. The date when the account receivable did not make payment c. The date of issue of the note and the Due date d. The date when the note will become due Clear my choiceIf the maker of a promissory note fails to pay the note on the due date, the note is said to bea.displacedb.disallowedc.discountedd.dishonored If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer’s account as uncollectible? a.Bad Debt Expenseb.Uncollectible Accounts Receivablec.Accounts Receivabled.Allowance for Doubtful Accounts Selling receivables is calleda.sold receivablesb.factoringc.sales revenued.a factoIf a note receivable is discounted without recourse a. the contingent liability may be disclosed b. liability for note receivable discounted is credited c. note receivable is credited d. the transaction shall be accounted for as a secured borrowing as opposed to a sale
