UESTION 1 The interest deducted in advance from the face value of a non-interest bearing notes payable is/are called: a bank discount. proceeds. interest payable. interest receivable. 2 points Saved QUESTION 2 The normal balance of the Notes Receivable account is: credit. debit. nominal. income. 2 points Save Answer QUESTION 3 When the due date of a note extends beyond one year, it becomes a: long-term liability. current liability. short-term liability. current asset. 2 points Save Answer QUESTION 4 Mr. Robert signed a 120 day, 10% note with First Federal State Bank for $12,000 on August 5th. What will be the maturity date of the note? December 3rd December 4th November 30th December 2nd 2 points Save Answer QUESTION 5 What will the maturity value of a note payable be if the principal is $15,000, the interest rate is 8%, and the term is 60 days? $15,197.26 $14,802.74 $15,000 $197.26 2 points Save Answer QUESTION 6 Jacob borrowed $20,000 for 30 days at 5% from SkyBank. What will be the interest amount? $20,000 $82.19 $19,917.80 $20,082.19 2 points Save Answer QUESTION 7 Match the terms in column I with the descriptions in Column II. normal balance of notes payable Read Answer Items for Question 7 normal balance of notes receivable Read Answer Items for Question 7 interest income Read Answer Items for Question 7 interest deducted in advance Read Answer Items for Question 7 face value minus bank discount Read Answer Items for Question 7 Answer A. debit balance B. proceeds C. credit balance D. bank discount E. other revenue 5 points Save Answer QUESTION 8 Match the terms in column I with the descriptions in Column II. non-interest bearing notes payable Read Answer Items for Question 8 interest bearing notes payable Read Answer Items for Question 8 notes payable Read Answer Items for Question 8 notes receivable Read Answer Items for Question 8 long-term liability Read Answer Items for Question 8 Answer A. due date span extends more than one year from issuance B. principal plus interest to be paid on the maturity date C. no interest rate is stated on the note D. asset E. liability