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Flashcards in Notes Recievable Deck (7)
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1

What are the two types of NR?

Interest and Non interest bearing

2

NR are recorded at fair value. TF

False. NR are recorded at present value of future cash flows.

3

What columns are needed to set up the effective interest table?

Date, Cash Recieved, Int Recieved, D/P Amortized, Unamortized D/P, Carrying Value

4

Interest Receivable is equated using the stated rate of interest x the carrying value. TF

False. Market rate.

5

Cash received is equated by multiplying the stated rate of interest by the face amount of the note. TF

True

6

The discount or premium is the difference between the interest receivable and the cash received. TF

True

7

A note receivable, due in 9 months will be reported at present value of future cash flows. TF

False, any note due within a year is recorded at its FACE VALUE