When a Long-Term Non-Interest-Bearing Note Is Exchanged Solely for Cash

question 26

Multiple Choice

When a long-term non-interest-bearing note is exchanged solely for cash, the difference between the cash received and the face value of the note is recorded as

• A)interest expense
• B)premium on notes payable
• C)discount on notes payable
• D)interest payable

---

Definitions:

Completely Randomized Design

An experimental design where subjects are randomly assigned to treatments, ensuring that each treatment group is statistically equivalent at the start of the experiment.

Randomized Block Design

An experimental design that groups subjects into blocks based on certain variables to control the variables' effect on the experiment, and randomly assigns treatments within those blocks.

F-distribution

A statistical distribution used in the analysis of variance, among other tests, characterized by two parameters that determine its shape.

Skewed to the Right

Describes a distribution where the tail is longer on the right side, indicating that there are a number of outliers higher than the mode.