If the Proceeds of a Note Discounted at a Bank

question 90

Multiple Choice

If the proceeds of a note discounted at a bank are greater than the face value of the note, the difference is recognized as

• A)interest receivable.
• B)interest expense.
• C)notes receivable discounted.
• D)interest income.

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Definitions:

Service Department Costs

Expenses incurred by the units that support the production or operations of a company, such as human resources or maintenance.

Personnel Costs

Expenses related to employee compensation, including salaries, benefits, and taxes.

Family Medicine

A medical specialty devoted to comprehensive health care for people of all ages, emphasizing the family unit.

Information Technology

The use of computers, networks, and other electronic devices to store, process, and exchange electronic data and information.