Discount on Notes Payable Is a Contra Account to Notes

question 32

True/False

Discount on Notes Payable is a contra account to Notes Payable on the balance sheet.

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Definitions:

Market Price

The current rate for transactions involving a service or asset.

Stock Dividend

A stock dividend is a distribution of additional shares of a company's stock to its shareholders instead of cash dividends.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.

Stock Dividend

A form of dividend payment made in shares rather than cash, which increases the number of shares held by each shareholder.