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
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