Which of the Following Statements Is Correct

question 22

Multiple Choice

Which of the following statements is correct?

• A)To be considered a negotiable instrument, a promissory note must specify an interest rate.
• B)The amount stated on a note is called the face value.
• C)A company that issued a 6-month note payable would report its face value on the balance sheet as a long-term liability.
• D)A note payable must be payable at a specific time in the future.

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Definitions:

Base Salary

The initial rate of compensation that an employee receives, not including overtime, bonuses, or other extra pay.

Percentage Calculation

The mathematical process of determining the proportionate amount of a whole as a percentage.

Percentage Calculation

Percentage calculation involves determining the part of a whole in terms of 100, used for comparing proportions and expressing fractions.

Percentage Calculation

The mathematical process of determining the percentage amount or rate of something.