Which Statement Concerning Notes Receivable Is False

question 28

Multiple Choice

Which statement concerning notes receivable is false?

• A) Notes receivable initially should be recorded at the present value of the future cash receipts.
• B) All notes implicitly include interest.
• C) The account Discount on Notes Receivable is a contra-revenue account ..
• D) The account Notes Receivable Dishonored is an asset account.

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Definitions:

Drawings

It refers to the amount of money or the value of goods taken from the business by the owner for personal use.

Withdrawal Of Cash

The act of taking out cash from a business by the owners for personal use.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing what the owner has invested or kept in the business.

Proprietorship

A business structure owned by a single individual, where the owner and the business are legally treated as the same entity.