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Quiz_-2.3.3.2-Theory-Quiz-5-Notes-Loans-and-Impairment.pdf...

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4/24/22, 8:14 PMQuiz: 2.3.3.2 Theory Quiz #5 - Notes, Loans and Impairment2.3.3.2 Theory Quiz #5 - Notes, Loans and ImpairmentStarted: Apr 24 at 8:04pmQuiz InstructionsThe following are sets of questions of different formats like: True or False, Multiple Choice or fill in theblanks. Please read each statement carefully.1 ptsQuestion 1On October 1, 2021, an entity received a one-year notes receivable bearing interestat the market rate. The face amount of the notes receivable and the entire amount ofthe interest are due on September 30, 2022. The interest receivable on December31, 2021 would consist of an amount representing three months of accrued interestincome.
1/9False1 ptsQuestion 3
False1 ptsQuestion 2On July 1, 2021, an entity obtained a 2-year 8% note receivable for servicesrendered. At that time, the market rate of interest was 10%. The face amount of thenote and the entire amount of interest are due on the date of maturity. Interestreceivable on December 31, 2021 is 4% of the face amount of the note.
4/24/22, 8:14 PMQuiz: 2.3.3.2 Theory Quiz #5 - Notes, Loans and ImpairmentAn entity uses the installment sales method to recognize revenue. Customers paythe installment notes in 24 equal monthly amounts which include 12% interest. Theinstallment notes receivable balance 6 months after the sale is equal to the presentvalue of the remaining monthly payments discounted at 12%.
2/9False

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Term
Fall
Professor
Ronnie Lizada

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