exam 2 chapter 7 Flashcards
1
Q
promissory note
A
a written promise to pay a certain sum of money at a specific future date,
2
Q
Interest-bearing notes
A
have a stated rate of interest
3
Q
Zero-interest-bearing notes
A
include interest as part of their face amount.
4
Q
The basic issues in account for notes receivable are the same as those for accounts receivable
A
recognition, valuation and disposition
5
Q
How do companies record and report long-term notes?
A
At the present value of the cash they expect to collect
