Which of the following statements is true relating to amortization of discount on notes receivable? a. Amortization of discount increases the note's stated interest and carrying amount. b. Amortization of discount decreases the note's stated interest and carrying amount. c. Amortization of discount increases the note's stated interest and decreases the note's carrying amount. d. Amortization of discount decreases the note's stated interest and increases the note's carrying am

Which of the following statements is true relating to amortization of discount on notes receivable? a. Amortization of discount increases the note's stated interest and carrying amount. b. Amortization of discount decreases the note's stated interest and carrying amount. c. Amortization of discount increases the note's stated interest and decreases the note's carrying amount. d. Amortization of discount decreases the note's stated interest and increases the note's carrying am

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 3TF: The difference between the maturity value of a note and the net proceeds is called discounting.

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Question

26.Which of the following statements is true relating to amortization of discount on notes receivable?

a. Amortization of discount increases the note's stated interest and carrying amount.

b. Amortization of discount decreases the note's stated interest and carrying amount.

c. Amortization of discount increases the note's stated interest and decreases the note's carrying amount.

d. Amortization of discount decreases the note's stated interest and increases the note's carrying amount.

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