In the Case of a Non-Interest-Bearing Note

question 40

Multiple Choice

In the case of a non-interest-bearing note,

• A) the amount borrowed is listed as the face value
• B) the amount to be collected is listed as the face value
• C) the present value is listed as the face value
• D) the present value is listed as the face value.

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Definitions:

Unadjusted Trial Balance

A listing of all accounts in the general ledger before any adjustments are made for the end of the reporting period.

Vertical Analysis

A financial analysis tool that compares each item in a financial statement to a base figure within the same statement, expressed as a percentage.

Operating Income

Income generated from a company's primary business operations, excluding revenue and expenses from non-operating activities such as investments.

Revenue

The total income generated by a business from its operational activities, such as sales of goods or services, before any expenses are deducted.