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.

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Definitions:

Operating Activities

The primary revenue-producing activities of a business, involving transactions and events that affect net income.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Investing Activities

Financial activities related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Net Cash Provided

The total amount of cash generated by a company's operations, investments, and financing activities within a specific time frame.