Flashcards in Notes Recievable Deck (7)
What are the two types of NR?
Interest and Non interest bearing
NR are recorded at fair value. TF
False. NR are recorded at present value of future cash flows.
What columns are needed to set up the effective interest table?
Date, Cash Recieved, Int Recieved, D/P Amortized, Unamortized D/P, Carrying Value
Interest Receivable is equated using the stated rate of interest x the carrying value. TF
False. Market rate.
Cash received is equated by multiplying the stated rate of interest by the face amount of the note. TF
The discount or premium is the difference between the interest receivable and the cash received. TF