When a Note Receivable Has Been Discounted by a Company

question 152

Multiple Choice

When a note receivable has been discounted by a company,

• A)an account called discount on notes receivable is used.
• B)it will be shown as an asset of the company.
• C)it slows the collection process.
• D)it may be shown as a contingent liability in the footnotes.

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Definitions:

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