How does the going concern assumption affect accounting for notes payable?
A)It dictates that interest expense be accrued at the end of the accounting period.
B)It dictates that notes payable be reported at their face value.
C)It dictates that notes payable be reported at their net realizable value.
D)It dictates that interest expense be paid when the note matures.

Question

Quizplus · Accepted Answer

The assumptions that companies are going concerns, or will continue to operate. dictates that notes payable be reported at their face value, as companies are expected to pay their obligations in full.

How Does the Going Concern Assumption Affect Accounting for Notes