QUESTION 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. QUESTION 2 The normal balance of the Notes Receivable accountis: credit. debit. nominal. income. QUESTION 3 When the due date of a note extends beyond one year, it becomes a:long-term liability. current liability. short-term liability.current asset. 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 QUESTION 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 QUESTION 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 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 QUESTION 8 Match the terms in column I with the descriptions in Column II. Column I non-interest bearing notes payable interest bearing notes payable notes receivable long-term liability Column II A. due date span extends more than one year from issuance B. principal plus interest to be paid on the maturity date C. no interest rate is stated on the note D. asset E. liability
QUESTION 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.
QUESTION 2 The normal balance of the Notes Receivable accountis: credit. debit. nominal. income.
QUESTION 3 When the due date of a note extends beyond one year, it becomes a:long-term liability. current liability. short-term liability.current asset.
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
QUESTION 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
QUESTION 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
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
QUESTION 8 Match the terms in column I with the descriptions
in Column II.
Column I
non-interest bearing notes payable
interest bearing notes payable
notes receivable
long-term liability
Column II
A. due date span extends more than one year from issuance
B. principal plus interest to be paid on the maturity date
C. no interest rate is stated on the note
D. asset E. liability
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