A Note Receivable Is Considered Impaired When

question 13

Multiple Choice

A note receivable is considered impaired when

• A)the debtor misses an interest or principal payment
• B)it is probable that the creditor will be unable to collect all amounts due
• C)the market value of the note is less than its book value
• D)the market value of interest exceeds the original contract interest rate

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Definitions:

Atm

A unit of pressure defined as atmospheric pressure, equivalent to the pressure exerted by the Earth's atmosphere at sea level.

Volume

The quantity of three-dimensional space occupied by a substance or item.

°C

A unit of temperature on the Celsius scale, a temperature scale originally known as the centigrade scale, with 0°C denoting the freezing point of water and 100°C its boiling point at sea level.

Atm

A unit of pressure defined as being equal to the pressure exerted by the Earth's atmosphere at sea level; approximately 101.325 kPa.