Question

UESTION 1 The interest deducted in advance from the face valueof a non-interest bearing notes payable is/are called: a bankdiscount. proceeds. interest payable. interest receivable. 2 pointsSaved QUESTION 2 The normal balance of the Notes Receivable accountis: credit. debit. nominal. income. 2 points Save Answer QUESTION 3When the due date of a note extends beyond one year, it becomes a:long-term liability. current liability. short-term liability.current asset. 2 points Save Answer QUESTION 4 Mr. Robert signed a120 day, 10% note with First Federal State Bank for $12,000 onAugust 5th. What will be the maturity date of the note? December3rd December 4th November 30th December 2nd 2 points Save AnswerQUESTION 5 What will the maturity value of a note payable be if theprincipal is $15,000, the interest rate is 8%, and the term is 60days? $15,197.26 $14,802.74 $15,000 $197.26 2 points Save AnswerQUESTION 6 Jacob borrowed $20,000 for 30 days at 5% from SkyBank.What will be the interest amount? $20,000 $82.19 $19,917.80$20,082.19 2 points Save Answer QUESTION 7 Match the terms incolumn I with the descriptions in Column II. normal balance ofnotes payable Read Answer Items for Question 7 normal balance ofnotes receivable Read Answer Items for Question 7 interest incomeRead Answer Items for Question 7 interest deducted in advance ReadAnswer Items for Question 7 face value minus bank discount ReadAnswer Items for Question 7 Answer A. debit balance B. proceeds C.credit balance D. bank discount E. other revenue 5 points SaveAnswer QUESTION 8 Match the terms in column I with the descriptionsin Column II. non-interest bearing notes payable Read Answer Itemsfor Question 8 interest bearing notes payable Read Answer Items forQuestion 8 notes payable Read Answer Items for Question 8 notesreceivable Read Answer Items for Question 8 long-term liabilityRead Answer Items for Question 8 Answer A. due date span extendsmore than one year from issuance B. principal plus interest to bepaid on the maturity date C. no interest rate is stated on the noteD. asset E. liability



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