If a Company Issues a Non-Interest-Bearing Note Payable, Then

question 67

Multiple Choice

If a company issues a non-interest-bearing note payable, then

• A)no interest expense will be recognized over the life of the note.
• B)no principal payments will be made over the life of the note.
• C)no interest payments will be made over the life of the note.
• D)the covenants should be rewritten to conform to GAAP.

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