The Entry to Record an Instalment Payment on a Non-Current

question 97

Multiple Choice

The entry to record an instalment payment on a non-current note payable is

• A) Mortgage Notes Payable Cash
• B) Interest Expense Cash
• C) Mortgage Notes Payable Interest Expense
• Cash
• D) Bonds Payable Cash

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Definitions:

Without Recourse

A term indicating that the seller of a financial instrument assumes no liability if the instrument fails to perform.

Qualified Endorsement

An endorsement on a negotiable instrument that includes conditions limiting the liability of the endorser.

Special

Distinguished by a unique or particular quality, different from the norm.

Trust Endorsement

An endorsement that is used when the instrument is being transferred to an agent or trustee for the benefit of either the endorser or a third party; gives the endorser the rights of a holder.