When a Note Payable Is Exchanged for Property, Goods, or Services

question 16

Multiple Choice

When a note payable is exchanged for property, goods, or services, the stated interest rate is presumed to be fair unless

• A) no interest rate is stated.
• B) the stated interest rate is unreasonable.
• C) the stated face amount of the note is materially different from the current cash sales price for similar items or from current fair value of the note.
• D) any of these answers are correct.

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Definitions:

Births Equals Deaths

A demographic state where the number of births in a population is equal to the number of deaths, resulting in zero population growth.

Demographic Transition

The transition from high birth and death rates to lower birth and death rates as a country or region develops from a pre-industrial to an industrialized economic system.

Education

The process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various methods such as teaching, training, storytelling, discussion, and directed research.

Medical Care

Professional health services provided by doctors and nurses to diagnose, treat, and prevent illness, injury, and other physical and mental impairments.