Define installment Notes.

Q: Describe the accounting for refund liabilities.

A: Liabilities:   The liabilities are the amount of money which a business has to pay to the outside…

Q: How can we calculate an Effective Interest Rate Based on a Payment Period?

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: Describe the repayment process for both a term loan and ab

A: Term loan and bonds are two different types of raising money.

Q: The payment for the use of borrowed money is called: loan maturity value interest principal

A: Borrowed money is the loan taken, which is to be repaid within the terms of the loan contract.

Q: Identify which one of the following is also called as Fixed deposit account? a. Demand deposit b.…

A: Fixed deposit accounts are fixed deposit accounts have fixed MATURITY period and can be withdrawn…

Q: Define Long-Term Notes.

A: Liability: It is the sum of money owed by the company to external entities.

Q: direct and indirect relationships between balance of payment and inflation rate.

A:

Q: Explain the initial measurement of long-term notes receivable.

A: solution : Explain the initial measurement of long-term notes receivable. Long term note receivables…

Q: The total that must be paid when a note becomes due is known as the note value. maturity value. face…

A: A Note is a Debt Instrument. It accrues interest on the principal value and the total amount due at…

Q: How much is the premium or discount of the new note payable

A: Premium or discount on the note payable arises due to the fact of that the amount which has been…

Q: Write the methods of Calculating Interest?

A: Methods of calculating interest: The basic and fundamental methods for calculating interests are…

Q: How long-term deposit accounts benefit borrowers

A: A deposit account is an account that is held by the customers of a bank and financial institutions…

Q: What is the meaning of Installment Sales?

A: Installment sale: It is one of a few potential income acknowledgments approaches under the Generally…

Q: Explain Subsequent Valuation of Notes Receivable.

A: Note receivables are balance sheet items that record promissory notes’ value that is owed to the…

Q: How to calculate the due date, interest and maturity value on both a Traditional Note and Discounted…

A: Due date for a Traditional Note and discounted note is calculated as below:

Q: Notes Receivable with an Effective and Nominal Rate should report interest expense as?   Effective…

A: Solution: Notes Receivable with an Effective and Nominal Rate should report interest expense as…

Q: In the case of installment notes, interest expense is calculated as a constant percentage of the…

A: Explanation: That's correct; interest expense on installment notes is indeed calculated as a…

Q: Differentiate between a stated rate of interest and effective rate of interest.

A: Answer: Stated interest rate: This is the interest rate quoted or the average rate offered by the…

Q: Distinguish between bank discount and simple interest.

A: Bank discount is defined as a interest which is deducted by the bank when a loan is made. It is…

Q: When is it recommended to compute the effective interest rate per payment period?

A: When there is a compounding of interest, then the EIR per payment period is recommended. As it is a…

Q: Give an example assuming that  the Compounding Period equals to Payment Period?

A: The representation on the basis of assumption:

Q: Define discount percentage (credit)

A: The discount rate is the amount paid on debit and credit card payments to a dealer for payment…

Q: Explain the subsequent measurement of long-term notes receivable.

A: Long-term notes receivable are those notes which are due for more than one year after the date of…

Q: Explain the accounting for long-term notes payable.

A: Notes payable: Notes payable is a written promise to make payment for specific sum at a certain…

Q: Define bonds discount and give an example.

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: ctive interest rate

A: The objective is to find the name of the interest that is defined as the interest paid on the…

Q: Explain Long-Term Notes Receivable with example.

A: Notes receivable: An asset representing the right to receive the principal amount contained in a…

Q: Explain an example of Short-Term Interest-Bearing Notes.

A: Short-term interest-bearing note: The short-term interest-bearing note is a note on which interest…

Q: Whenever payment and compounding periods differ from each other, it is recommended to compute the…

A: The effective annual interest rate is the real return for a bank account or other interest paid…