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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