When a Company Issues a Long-Term Non-Interest-Bearing Note Payable in Exchange

question 116

Multiple Choice

When a company issues a long-term non-interest-bearing note payable in exchange for cash and special rights, the difference between the cash proceeds and the present value of the note is recorded as

• A)premium on bonds payable
• B)unearned revenue
• C)interest expense
• D)extraordinary loss

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Definitions:

Stimulus Input

Any information or event from the environment that is received by the senses and can influence behavior or physiological responses.

Working Memory

An intellectual structure possessing finite capacity, aimed at briefly storing information for further processing.

Long-term Memory

The facet of memory involved in the storage and retrieval of information over extended periods.

Depth-of-processing

A theory in cognitive psychology suggesting that the depth (shallow to deep) at which information is processed affects memory recall, with deeper processing leading to better recall.