A note payable:
A) Is typically a transaction with a single lender.
B) Is initially measured and recorded at its selling price.
C) Has annual interest expense calculated by multiplying the interest rate on the note by the beginning of the period carrying value.
D) Can be repaid as a lump sum.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

All of the choices are correct. A note payable is typically a transaction with a single lender, it is initially measured and recorded at its selling price, it has annual interest expense calculated by multiplying the interest rate on the note by the beginning of the period carrying value, and it can be repaid as a lump sum.

A Note Payable