When a zero-interest bearing note is issued, the note payable account will be credited for the present value of the maturity value.

Name: When a zero-interest bearing note is issued, the note payable account will be credited for the present value of the maturity value.
Brand: Quizplus
Rating: 4.8 (28 reviews)

Question

Quizplus · Accepted Answer

When a zero-interest bearing note is issued, the note payable is recorded at its present value, which is the amount that will be paid at maturity discounted at the market rate of interest.

When a Zero-Interest Bearing Note Is Issued, the Note Payable