A Business Is Holding a Note Receivable and Wishes to Cash

question 124

Multiple Choice

A business is holding a note receivable and wishes to cash it in before its maturity date by selling it to a bank.If the business receives less than the maturity value of the note,the difference is treated as:

• A) Interest revenue.
• B) Sales revenue.
• C) Gain on sale of property, plant & equipment.
• D) Interest expense.

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Definitions:

Heart Sounds

The noises generated by the beating heart and the resultant flow of blood through it.

Tricuspid

Relating to the valve between the right atrium and right ventricle of the heart, consisting of three cusps or flaps that prevent blood from flowing backwards.

Pulmonic

Relating to the lungs or the pulmonary artery, often used in medical contexts to discuss conditions or treatments affecting the respiratory system.

Elastic Recoil

The ability of an organ or tissue to return to its original shape after being stretched or compressed.