A Company Bought an Asset and Signed a Four-Year Non-Interest-Bearing

question 80

Multiple Choice

A company bought an asset and signed a four-year non-interest-bearing note for the full amount.If the note were recorded at its face value, which of the following statements would be true?

• A)Only liabilities will be understated.
• B)Only liabilities will be overstated.
• C)Both assets and liabilities will be overstated.
• D)Both assets and liabilities will be understated.

---

Definitions:

Positive Attitude

A mental state that anticipates the best possible outcome from any situation.

Fulltime Employment

A work arrangement where an individual is employed by an organization for the maximum number of hours considered standard, typically with benefits such as health insurance and paid leave.

Second Interview

A subsequent meeting in the hiring process where a candidate is further assessed for their suitability for a position.

CareerBuilder Survey

A research tool or study, often conducted by the CareerBuilder company, that collects data on employment trends, job satisfaction, and other career-related topics.