Question 1

A(n)____________________ is a form of commercial time draft that arises out of the sale of goods and has this fact noted on its face.

Accepted Answer

The answer of A(n)____________________ is a form of commercial time...

Question 2

Upon collection of the amount due on a $6,000 face value,90-day note with interest at 10 percent a year,the Note Receivable account is

Accepted Answer

A)   debited for $6,600.
B)   credited for $6,000.
C)   credited for $6,150.
D)   debited for $6,000.E) All of the above
F) B) and C)

Question 3

The Notes Receivable account usually has a credit balance.

Accepted Answer

A) True 
 B)False

Question 4

Find the due date of a 3-month note issued on September 12,2013.

Accepted Answer

The answer of Find the due date of a 3-month...

Question 5

The entry to record the collection of the amount due on the maturity date of a note includes a debit to Notes Receivable.

Accepted Answer

A) True 
 B)False

Question 6

The amount of cash paid at maturity date on a $9,000 face value,60-day note bearing interest at 6 percent is

Accepted Answer

A)   $9,720.
B)   $9,090.
C)   $9,000.
D)   $9,540.E) None of the above
F) All of the above

Question 7

The amount of interest that will accumulate on an $8,000 face value,30-day note bearing interest at 12 percent is ___________________.

Accepted Answer

The answer of The amount of interest that will accumulate...

Question 8

How much interest will accrue on a $40,000 face value,60-day note that bears interest at 9 percent a year?

Accepted Answer

A)   $3,600
B)   $1,800
C)   $900
D)   $600E) A) and B)
F) All of the above

Question 9

The face value of a noninterest-bearing note is its maturity value.

Accepted Answer

A) True 
 B)False

Question 10

A 3-month note payable is classified as a(n)____________________ liability on the balance sheet.

Accepted Answer

The answer of A 3-month note payable is classified as...

Question 11

A 2-month note dated January 1,2013,will mature on the same date as a 60-day note dated January 1,2013.

Accepted Answer

A) True 
 B)False

Question 12

Notes Receivable Discounted represents a(n)____________________ liability.

Accepted Answer

The answer of Notes Receivable Discounted represents a(n)____________________ liability....

Question 13

Find the due date of a 30-day note issued on November 10,2013.

Accepted Answer

The answer of Find the due date of a 30-day...

Question 14

Notes Receivable Discounted is usually shown in the Current Liabilities section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 15

The maturity value of a 120-day note for $12,000 that bears interest at 8 percent a year is

Accepted Answer

A)   $12,000.
B)   $11,680.
C)   $12,320.
D)   $12,960.E) A) and D)
F) None of the above

Question 16

A journal entry is recorded at the time a sight draft is issued.

Accepted Answer

A) True 
 B)False

Question 17

Annual Percentage Rate combines interest rates and fees at lending institutions enabling a borrower to compare fees.

Accepted Answer

A) True 
 B)False

Question 18

The dollar amount shown on an interest-bearing note is called the principal,or ____________________ value.

Accepted Answer

The answer of The dollar amount shown on an interest-bearing...

Question 19

The Interest Income account

Accepted Answer

A)   usually has a credit balance.
B)   is usually shown in the Current Assets section of the balance sheet.
C)   is debited when the firm records the effects of a dishonored note receivable.
D)   is credited when the firm accepts a note receivable from a customer.E) A) and B)
F) None of the above

Question 20

Find the due date of a 60-day note issued on January 18,2013.

Accepted Answer

The answer of Find the due date of a 60-day...

Exam 16: Notes Payable and Notes Receivable

The face value of a noninterest-bearing note is its maturity value.

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Find the due date of a 30-day note issued on November 10,2013.

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Upon collection of the amount due on a $6,000 face value,90-day note with interest at 10 percent a year,the Note Receivable account is

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Find the due date of a 3-month note issued on September 12,2013.

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Annual Percentage Rate combines interest rates and fees at lending institutions enabling a borrower to compare fees.

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The dollar amount shown on an interest-bearing note is called the principal,or ____________________ value.

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A journal entry is recorded at the time a sight draft is issued.

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Notes Receivable Discounted is usually shown in the Current Liabilities section of the balance sheet.

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The amount of cash paid at maturity date on a $9,000 face value,60-day note bearing interest at 6 percent is

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A 3-month note payable is classified as a(n)____________________ liability on the balance sheet.

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A 2-month note dated January 1,2013,will mature on the same date as a 60-day note dated January 1,2013.

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The Interest Income account

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How much interest will accrue on a $40,000 face value,60-day note that bears interest at 9 percent a year?

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The entry to record the collection of the amount due on the maturity date of a note includes a debit to Notes Receivable.

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Find the due date of a 60-day note issued on January 18,2013.

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The maturity value of a 120-day note for $12,000 that bears interest at 8 percent a year is

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The amount of interest that will accumulate on an $8,000 face value,30-day note bearing interest at 12 percent is ___________________.

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Notes Receivable Discounted represents a(n)____________________ liability.

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A(n)____________________ is a form of commercial time draft that arises out of the sale of goods and has this fact noted on its face.

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The Notes Receivable account usually has a credit balance.

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