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29.When a note is non-interest-bearing, the maturity value equals the _____.
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- Explain the initial measurement of,a. short-term notes receivableb. interest bearing long-term notesc. noninterest bearing note receivabled. interest bearing below market rate long-term notesShort-term non-interest-bearing notes receivable are usually recorded at their a. present value b. net realizable value c. principal value d. maturity value32.The time period between the date a note is discounted and the maturity date is called the _____ period. a.discount b.term c.exact d.growth
- 9. Face value of a note payable plus interest is called Omaturity value. O face value. Oproceeds. Oprincipal.60. If the face value of a notes receivable is greater than its present value, which would most likely appear in the journal entry in the amortization? a. Cr. Premium on Notes Receivable b. Dr. Discount on Notes Receivable c. Dr. Premium on Notes Receivable d. Cr. Discount on Notes ReceivableIA - 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.
- Under the effective interest method of interest bearing note in lump-sum payment, the interest to be paid is equal to A. the effective (yield) rate of interest multiplied by the face of the note. B. the effective rate multiplied by the beginning of the period carrying amount of the note. C. the stated rate multiplied by the beginning of the period carrying amount of the note. D. the stated (nominal) rate of interest multiplied by the face of the note.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?11.When a note receivable is discounted with recourse, a. Liability on Discounted Notes Receivable is credited e b. Liability on Discounted Notes Receivable is credited equal to the proceeds. c. Notes Receivable is credited equal to the face value. d. Notes Receivable is credited equal to the maturity value.
- When the interest is NOT included in the face value of the note, the maturity value is greater than the face value a. True Ob. FalseWhat is the principal amount of a note receivable plus the interest due called? promissory value maturity value expected value face valueThe total that must be paid when a note becomes due is known as the note value. maturity value. face value. principal.