Which of the Following Statements Is Not Correct

question 94

Multiple Choice

Which of the following statements is not correct?

• A)When a note receivable is discounted, the proceeds are computed by subtracting the discount from the maturity value of the note.
• B)The entry to record the discounting of a note receivable may result in the recognition of interest expense.
• C)When a note is discounted at a bank, the proceeds are always less than the maturity value of the note.
• D)When a note receivable is discounted at a bank, the entry to record the transaction includes a debit to cash.

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Definitions:

Illogical

Lacking sense or clear, sound reasoning.

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