Would you rather borrow $10,000 by issuing (a) a 90-day, 15 percent note or (b) a 90-day, discounted note discounted at 15 percent? Why or why not? Explain your answer based on what you have read about discounted note

Would you rather borrow $10,000 by issuing (a) a 90-day, 15 percent note or (b) a 90-day, discounted note discounted at 15 percent? Why or why not? Explain your answer based on what you have read about discounted note

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Would you rather borrow $10,000 by issuing (a) a 90-day, 15 percent note or (b) a 90-day, discounted note discounted at 15 percent?

Why or why not?

Explain your answer based on what you have read about discounted note

QUESTION 2
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What makes product warranties considered as contingent liabilities?
Also, what Generally Accepted Accounting Principle supports how accountants record contingent liabilities?
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