When a Company Issues a Long-Term Non-Interest-Bearing Note Payable in Exchange

question 116

Multiple Choice

When a company issues a long-term non-interest-bearing note payable in exchange for cash and special rights, the difference between the cash proceeds and the present value of the note is recorded as

• A)premium on bonds payable
• B)unearned revenue
• C)interest expense
• D)extraordinary loss

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Definitions:

Entry Condition

A precondition or requirement that must be met before the execution of a certain block of code or function.

Break Statement

The break statement terminates the current loop, switch, or label statement and transfers control to the code following the terminated statement.

For Loop

A control flow statement for specifying iteration, allowing code to be executed repeatedly based on a given boolean condition.

Scanner Object

In Java, an object used to read the input from various sources, including user input from the console.