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If a Note Receivable Was Issued at an Amount That

Question 355

Multiple Choice

If a note receivable was issued at an amount that is more than its face value, then


A) the note was issued at a premium and the note's stated rate was different from the
Prevailing market rate of interest.
B) the note was issued at a premium and the note's stated rate was the same as the
Prevailing market rate of interest.
C) the note was issued at a discount and the note's stated rate was the same as the
Prevailing market rate of interest.
D) the note was issued at a discount and the note's stated rate was different from the
Prevailing market rate of interest.

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