What do firms use to record the sales value of a transaction when a note receivable has either an unreasonable rate of interest or no interest rate stated? OA. Firms uses the face value of the note to record the sales value of a transaction when a note receivable has either an unreasonable rate of interest or no interest stated. OB. Firms uses the cost of the goods or services provided plus a mark-up to record the sales value of a transaction when a note receivable has either an unreasonable rate of interest or no interest rate stated. OC. An observed market price is the most reliable evidence of an asset's fair value. Fair value estimates are based on the market value of the goods or services provided, or the note. If a company cannot obtain the fair value of the goods or services, the present value of the note is found using the stated rate of interest. O D. An observed market price is the most reliable evidence of an asset's fair value. If a company receives a note in exchange for goods or services, assume the note's present value is the fair value of the goods or services provided. Fair value estimates are based on the market value of the goods or services provided, or the note. If a company cannot obtain the fair value of the goods or services, the present value of the note is found using the market rate of interest.
What do firms use to record the sales value of a transaction when a note receivable has either an unreasonable rate of interest or no interest rate stated? OA. Firms uses the face value of the note to record the sales value of a transaction when a note receivable has either an unreasonable rate of interest or no interest stated. OB. Firms uses the cost of the goods or services provided plus a mark-up to record the sales value of a transaction when a note receivable has either an unreasonable rate of interest or no interest rate stated. OC. An observed market price is the most reliable evidence of an asset's fair value. Fair value estimates are based on the market value of the goods or services provided, or the note. If a company cannot obtain the fair value of the goods or services, the present value of the note is found using the stated rate of interest. O D. An observed market price is the most reliable evidence of an asset's fair value. If a company receives a note in exchange for goods or services, assume the note's present value is the fair value of the goods or services provided. Fair value estimates are based on the market value of the goods or services provided, or the note. If a company cannot obtain the fair value of the goods or services, the present value of the note is found using the market rate of interest.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:What do firms use to record the sales value of a transaction when a note receivable has either an unreasonable rate of interest or no interest rate stated?
O A. Firms uses the face value of the note to record the sales value of a transaction when a note receivable has either an unreasonable rate of interest or no interest stated.
O B. Firms uses the cost of the goods or services provided plus a mark-up to record the sales value of a transaction when a note receivable has either an unreasonable rate of interest or no interest rate stated.
O C. An observed market price is the most reliable evidence of an asset's fair value. Fair value estimates are based on the market value of the goods or services provided, or the note. If a company cannot obtain the fair value of the goods or services, the present value of the
note is found using the stated rate of interest.
O D. An observed market price is the most reliable evidence of an asset's fair value. If a company receives a note in exchange for goods or services, assume the note's present value is the fair value of the goods or services provided. Fair value estimates are based on the
market value of the goods or services provided, or the note. If a company cannot obtain the fair value of the goods or services, the present value of the note is found using the market rate of interest.
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