The Entry to Record the Issuance of an Interest-Bearing Note

question 117

Multiple Choice

The entry to record the issuance of an interest-bearing note credits Notes Payable for the note's

• A) maturity value.
• B) market value.
• C) face value.
• D) cash realizable value.

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Definitions:

Quart

A unit of liquid volume equivalent to a quarter of a gallon, or approximately 0.946 liters.

Abbreviation

A shortened form of a word or phrase used to save space or time in written communication.

Numerator

The top number in a fraction that indicates how many parts of a whole are being considered.

Kilo-

A prefix in the metric system denoting a factor of one thousand.