F10 - Other Liabilities and Debt Covenants Flashcards
1
Q
How should the discount resulting from the determination of a note payable’s present value be reported on the balance sheet?
A
As a direct reduction of the face value
2
Q
When should dividends be accrued for?
A
When declared
3
Q
T/F: If a note is sold with recourse, it is not discounted to present value
A
True
4
Q
T/F: Loan origination fees are deferred and recognized over the life of the loan as an adjustment of interest income
A
True; it is similar to the treatment of bond discount amortization
