A Note That Does Not Include an Interest Rate Should

question 23

Multiple Choice

A note that does not include an interest rate should be recorded at:

• A)Its face amount if the difference between face and present value is material.
• B)Its present value if the difference between face and present value is material.
• C)Its face amount at all times.
• D)Its present value at all times.

---

Definitions:

Direct Labor Costs

Expenses associated with employees who are directly involved in the production of goods or services.

Work in Process

Inventory that includes partially completed goods that are still in the production process.

Wages Payable

An account that records the amounts owed to employees for work performed that has not yet been paid.

Factory Overhead

All indirect costs associated with the production process, such as maintenance, utilities, and management salaries, not directly tied to specific units of product.