Writing and issuance of check to creditor will b a

19. Writing and issuance of check to creditor will
B a. increase the balance of the accounts payable.
b. decrease the balance of the accounts payable.
c. not affect the balance of the accounts payable.
d. none of these statements answers the question.
20. Which of the following account titles is not used under the gross method of accounting for cash discount?
C
(5) N
OTES
P
AYABLE
21. For notes issued with an unrealistic nominal interest rate,
B
22. Which of the following is true regarding interest on non-interest-bearing notes payable?
B
23. Which of the following is not necessarily valid relating to the presence of the “Interest Payable” account?
C a. Note payable is interest-bearing.
b. Interest payment dates do not coincide with the end of the reporting period.
c. Nominal rate of the note payable is unrealistic.
d. Nominal rate of the note payable is more than zero.
24. A non-interest-bearing note payable was issued at a discount on January 1, 2020. The amortized cost of this
note payable on December 31, 2020 is computed by
A