Which Statement Is Not True When a Long-Term Note Is

question 92

Multiple Choice

Which statement is not true when a long-term note is issued for cash plus some right or privilege?

• A)The creditor will debit Discount on Notes Receivable at the end of the period.
• B)The debtor will debit Discount on Notes Payable.
• C)The creditor will credit Unearned Revenue.
• D)The debtor will debit Unearned Revenue at the end of the period.

---

Definitions:

Private-Sector Risk

The risk associated with the non-governmental sector, encompassing uncertainties in business environments, market dynamics, and financial operations.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating behavior of the marketplace where individuals pursuing their own interest often benefit society as a whole.

Government Resource Allocation

The process by which government entities decide how to distribute resources and funds between various projects or sectors.

Competitive Forces

The external factors that influence the competitive position of a firm within an industry, including competition from rivals, potential new entrants, substitute products, bargaining power of suppliers, and bargaining power of customers.