When a Note Receivable Is Issued at a Discount, ________

question 117

Multiple Choice

When a note receivable is issued at a discount, ________.

• A) the face value of the note equals the proceeds
• B) the carrying value of the note decreases over the life of the note receivable
• C) the market rate of interest exceeds the stated rate
• D) the amount of discount amortized decreases each year over the life of the note

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