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

question 23

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)All of these answer choices are correct.

---

Definitions:

Authorities

Individuals or organizations that possess a specific power or control in a particular context, often within a hierarchy.

Previous Job

The last position of employment held by an individual before moving to their current role or seeking a new one.

Difficult Employee

An employee who presents challenges to management due to their attitude, behavior, or work habits.

Dislikes

Refers to feelings of disapproval or aversion towards someone or something.