Terms Definitions 1. Accounts receivable a. The party to a credit transaction who takes on an obligation/ payable. 2. Other receivables b. The party who receives a receivable and will collect cash in the future. 3. Debtor 4. Notes receivable c. A written promise to pay a specified amount of money at a particular future date. 5. Maturity date 6. Creditor d. The date when the note receivable is due. e. A miscellaneous category that includes any other type of receivable where there is a right to receive cash in the future. f. The right to receive cash in the future from customers for goods sold or for services performed.

Terms Definitions 1. Accounts receivable a. The party to a credit transaction who takes on an obligation/ payable. 2. Other receivables b. The party who receives a receivable and will collect cash in the future. 3. Debtor 4. Notes receivable c. A written promise to pay a specified amount of money at a particular future date. 5. Maturity date 6. Creditor d. The date when the note receivable is due. e. A miscellaneous category that includes any other type of receivable where there is a right to receive cash in the future. f. The right to receive cash in the future from customers for goods sold or for services performed.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12MC: Which of the following accounts are used when a short-term note payable with 5% interest is honored...

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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 payable
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.
IA - RECEIVABLE FINANCING 4. Identification. This is the sum of the face value of notes receivable and the accrued interest income as of the date of discounting.
The entry to record accrued interest on a note receivable would include a: debit to Cash credit to Interest Revenue credit to Interest Payable both a. and c both a. and b. 0 1 pts
ro.14 Defining common receivalles terms Metch the terms with their correct definition. Lear Definitions Terms a. The party to a credit transaction who takes on an obligation/payable. b. The party who receives a receivable and will collect cash in 1. Accounts receivable 2. Other receivables 3. Debtor the future. C. A written promise to pay a specified amount of money at a particular future date. 4. Notes receivable 5. Maturity date d. The date when the note receivable is due. e. A miscellaneous category that includes any other type of receivable where there is a right to receive cash in the future. 6. Creditor f. The right to receive cash in the future from customers for goods sold or for services performed.
The entry to record interest expense on a bank loan payable is a a. debit to interest expense and credit to note payable. b. debit to note payable and credit to interest revenue. c. debit to interest payable and credit to interest revenue. d. debit to interest expense and credit to interest payable.
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According to the promissory note below, answer the following questions (Refer to the pic attached) (a) Name the maker of the notes. (b) Name the payee. (c) Determine the due date to settle the payment. (d) Calculate the amount of interest according to the note above. (e) Find out the amount of maturity value.
(32) The journal entry to record accrued interest on a short-term note payable includes a debit to: A. Interest Payable and a credit to Notes Payable. B. Interest Expense and a credit to Cash C. Interest Expense and a credit to Interest Payable D. Interest Payable and a credit to Cash.
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Simple interest applies when interest is earned _____________. a. on interest b. in a serious of payments c. to a checking account d. only once before a payment