Even If an Interest-Bearing Note Receivable Is Dishonored, the Interest

question 10

True/False

Even if an interest-bearing note receivable is dishonored, the interest income due on the note should be recorded.

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Definitions:

Consensual

Agreed upon by all parties involved; based on or involving mutual consent.

Statutory

Pertaining to laws passed by a legislative body; relates to statutes.

Judgment

A legal decision made by a court regarding the rights and liabilities of parties in a legal action or proceeding.

Attachment

(1) The point at which a creditor becomes the secured party who has a security interest in the collateral. (2) A court order permitting a local court officer to seize a debtor’s property.