College Accounting, Chapters 1-27

23rd Edition

ISBN: 9781337794756

Author: HEINTZ, James A.

Publisher: Cengage Learning,

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College Accounting, Chapters 1-27

Accounting For Notes And Interest. 3TF

Question

Chapter 17, Problem 3TF

To determine

Identify whether the given statement is true or false.

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College Accounting, Chapters 1-27

23rd Edition

ISBN: 9781337794756

Author: HEINTZ, James A.

Publisher: Cengage Learning,

Not helpful? See similar books

College Accounting, Chapters 1-27

Accounting For Notes And Interest. 3TF

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College Accounting, Chapters 1-27

Ch. 17 - Prob. 1TFCh. 17 - Prob. 2TFCh. 17 - Prob. 3TFCh. 17 - Prob. 4TFCh. 17 - Prob. 5TFCh. 17 - Prob. 1MCCh. 17 - Prob. 2MCCh. 17 - Prob. 3MCCh. 17 - Prob. 4MCCh. 17 - Prob. 5MC

Ch. 17 - Prob. 1CECh. 17 - Prob. 2CECh. 17 - Prob. 3CECh. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 8RQCh. 17 - Prob. 9RQCh. 17 - Prob. 10RQCh. 17 - Prob. 11RQCh. 17 - Prob. 12RQCh. 17 - Prob. 13RQCh. 17 - Prob. 14RQCh. 17 - Prob. 15RQCh. 17 - Prob. 1SEACh. 17 - Prob. 2SEACh. 17 - Prob. 3SEACh. 17 - Prob. 4SEACh. 17 - Prob. 5SEACh. 17 - Prob. 6SEACh. 17 - Prob. 7SEACh. 17 - Prob. 8SEACh. 17 - Prob. 9SEACh. 17 - Prob. 10SPACh. 17 - Prob. 11SPACh. 17 - Prob. 12SPACh. 17 - Prob. 13SPACh. 17 - Prob. 14SPACh. 17 - Prob. 1SEBCh. 17 - Prob. 2SEBCh. 17 - Prob. 3SEBCh. 17 - Prob. 4SEBCh. 17 - Prob. 5SEBCh. 17 - Prob. 6SEBCh. 17 - Prob. 7SEBCh. 17 - Prob. 8SEBCh. 17 - Prob. 9SEBCh. 17 - Prob. 10SPBCh. 17 - Prob. 11SPBCh. 17 - Prob. 12SPBCh. 17 - Prob. 13SPBCh. 17 - Prob. 14SPBCh. 17 - Prob. 1MYWCh. 17 - Prob. 1ECCh. 17 - Prob. 1MPCh. 17 - Prob. 1CP

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What is the principal amount of a note receivable plus the interest due called?
promissory value
maturity value
expected value
face value

A discounted note will produce an effective rate which is different than the stated rate. Why does this occur?

What is “imputed interest”? In what situations is it necessaryto impute an interest rate for notes receivable?What are the considerations in imputing an appropriateinterest rate?

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?

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

What maturity value of the note?

The proceeds of a discounted note are equal to the face value of the note.
True
False

The concept that supports the discounting of notes to their present value is:
time value of money
matching
form over substance
amortization

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.

The effective interest technique is used to charge a discount on a bond that is due to be paid to interest cost.
true or false

Which 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 a key difference between a short-term note payable and a current portion of a noncurrent note payable?

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