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Regarding zero-interest-bearing notes: a.they do not have an interest component. b.the debtor receives the future value of the note and pays back the present value.
Regarding zero-interest-bearing notes:
a.they do not have an interest component.
b.the debtor receives the future value of the note and pays back the present value.
c.any interest is never recognized until the note is repaid.
d.the debtor receives the present value of the note and pays back the future value.
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Fundamental Accounting Principles
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
20th Edition
1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870
