Which of the Following Is True About Non-Interest Bearing Notes

question 24

Multiple Choice

Which of the following is true about non-interest bearing notes?

• A)The most common method of determining the fair value of non-interest bearing notes is the discounted cash flow analysis.
• B)Non-interest bearing short-term payables may never be measured at the original invoice amount.
• C)A rule of thumb is to use the face value for non-interest bearing notes payable with a duration of greater than 90 days.
• D)A rule of thumb is to use the market value for non-interest bearing notes payable with a duration of 90 days or less.

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Definitions:

Structural Location

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Status-Role Complex

A concept in sociology that describes how an individual's status (social position) comes with associated roles (expected behaviors) that guide interactions and identity.

Functional Prerequisite

Essential conditions or requirements that systems (e.g., social, biological) need to meet in order to survive and maintain stability.

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