If 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

Q: Which of the following is a contra-liability account? a. Taxes Payable b. Accumulated Amortization…

A: Contra liability account is one that is debited for the explicit purpose of offsetting a credit to…

Q: If the proceeds of a discounted note are less than the face amount, the difference is debited to…

A:

Q: Item 7 of 25 Which of the following is not related to loans involving inventory? Select the correct…

A: Inventory refers to accumulated goods but not services kept by a firm with an objective to sell it…

Q: How will the lender of the promissory note record the note on its books? as an expense as revenue…

A: Revenue: This is the income of a firm during an accounting period. The income is recognized as and…

Q: how are the origination fees borne by the borrower accounted for in relation to the initial…

A: External financing is the outsourcing of funds and refers to investment or financing provided by…

Q: Which of the following should not be included in the current liability section of the balance sheet?…

A: The balance sheet is the statement of financial position of the business.

Q: f a problem is silent to the terms of a note payable, is it considered as a long-term or a…

A:

Q: If a note receivable is discounted with recourse, which is false?  a. a contingent liability exists…

A: b. note receivable discounted will be credited EXPLAINATION:  Discounting means selling or pledging…

Q: S1: In note discounting treated as a secured borrowing, a contingent liability is recognized on the…

A: Contingent liability: Contingent liability can be defined as the liability that may arise in future…

Q: classified as liabilities and explain why, or why not, they are classified as liabilities: a)…

A: Liabilities are those financial obligation which would result in outflow of financial resources of…

Q: a debtor and a creditor record the same note, respectively, as a: A. note receivable and note…

A: The debtor refers to the person or an entity who owes some amount from another person. The another…

Q: The amortization of premium on notes receivable is a. deduction from accrued interest receivable b.…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds.

Q: Discount on note receivable is: Group of answer choices the amount of total interest earned as of…

A: Discounting on bills receivable or note receivable means pledging to pay before the maturity date.…

Q: 1. The discounting of note receivable is accounted for as a secured borrowing. 2. The discounting of…

A: Note receivables: Note receivables can be defined as the written promise made by the borrower to…

Q: hort-term notes payable: O Can replace an account payable O Can be issued in return for money…

A: Short term notes payable is a current liability. It is an obligation to pay a specified sum plus…

Q: The indenture is a contract between the issuer and lenders that does all the following EXCEPT…

A: Indenture contains-

Q: When a borrower receives the face amount of a discounted note less the discount, the amount received…

A: Explanation: A note is issued by the borrower to the lender indicating a promise to pay the…

Q: Explain why a non-interest bearing note is effectively an interest-bearing note?

A: solution concept non interest bearing note               A non interest bearing note is a note that…

Q: What type of account is Discount on Bonds Payable, and what is its normal balance?a. Adjusting…

A:

Q: In relation to receivables, an entity is required.by PFRSS to O All of these. Classify receivables…

A: Accounts Receivables - Accounts Receivable is represented as the amount due to the company on…

Q: An installment note is a liability requiring a series of payments to the lender. True or False True…

A: Introduction: An instalment note is a legal obligation or liability that requires the lender to…

Q: is a practice of transfering the ownership of a negotiable instrument such as a check by a payee to…

A: Discounting means where the negotiable instrument has been given to bank before due date to take…

Q: Is any special accounting treatment required for the assigning of accounts receivable in general as…

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: Distinguish between an interest-bearing note and a non-interest-bearing note. How are the proceeds…

A: A commercial paper that contains an express and absolute promise by the maker to…

Q: Notes receivable differ from accounts receivable in that notes receivable represent written debt…

A:

Q: TRUE or FALSE. In discounting of customer’s note under conditional sale, an account “Note…

A: Solution Concept Discounting of customers note               It means that when we receive the note…

Q: 1. Which of the following statements is incorrect? a Notes payable are initially recognized at fair…

A: Notes Payable is an obligation that is supposed to be settled in the future and includes a portion…

Q: Does a Discounted Note Payable provide credit without interest?

A: Discounted Note Payable means that the purchase price(PV) is less than the maturity/face value(FV)…

Q: Does a discounted note payable provide credit without interest? Discuss.

A: Short-term notes payable: Short-term notes payable is a written promise made by the business to pay…

Q: Which of the following is true? Short-term notes payable should be discounted at its present value,…

A: Note principal states the amount that the note signer agrees for paying back when the note matures…

Q: Which of the following statements is incorrect regarding the classification of accounts and notes…

A: In case of valuation of accounts that are to be appropriately offset against the proper accounts…

Q: Differentiate between the use of receivables in financing arrangements accountedfor as a secured…

A: Meaning of Financing with Receivable Financing receivable is refer as the arrangement in which…

Q: Discounting is a transfer or endorsement of a promissory note by the payee in favor of another party…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: TRUE OR FALSE? (Based on the book.) The effect of a lender agreeing to give the borrowing entity a…

A: SOLUTION NON CURRENT LIABILITIES ARE THE COMPANY'S LONG TERM FINANCIAL DEBTS OR LIABILITIES THAT ARE…

Q: 8. When specified receivables are used to secure for a loan on a notification basis, which…

A: The account receivables are the current assets of the company, they represent the sale made by the…

Q: 18 - The entity made a discount due to the premature payment of the receivable arising from the sale…

A: When the entity made a discount for the earlier payment of the sales made on a credit basis, then…

Q: In Promissory note, Maker is the person who. a. Receives the payment b. Makes the sales c. Makes…

A: A promissory note is a shred of documentary evidence in which one party makes the promise to another…

Q: Which of the following is false about the discount on short-term notes payable? The Discount on…

A: Answer- Discount on short-term notes payable - A discount on notes payable are as a result of…

Q: Which of the following statements is incorrect?     a. Trade receivables are recognized…

A: Solution: "When discounting notes, the term discount period refers to the period of time that the…

Q: Which of the following statement is true about a noninterest-bearing note? Group of answer choices…

A: Solution: Non interest bearing note is the note that were issued at discount to face value and that…

Q: Which of the following is classified as nonmonetary? a. Warranty liability b. Accrued expense c.…

A: The question is multiple choice question Required  Choose the Correct Option.

Q: Trade receivables are preferably presented on the face of the statement of financial position Select…

A: Solution: Trade receivables are the receivables arises from sales of goods or Sales of services.…

Q: A promissory note is written by a. A seller in favour of another seller b. A customer in favour of…

A: The person who promised to pay the specified amount by signing a note is treated as a notes payer as…

Q: What accounts are used to record a contingent warranty liability that is probable and estimable…

A: Warranty is a form of assurance being provided by the seller to the buyer that if there will be any…