The Discount on Notes Payable account is always used when accounting for a:
A)noninterest-bearing note
B)interest bearing note
C)contra payment note
D)installment note

Question

Quizplus · Accepted Answer

The Discount on Notes Payable account is used when accounting for a noninterest-bearing note. This account represents the interest expense over the life of the note and is used to adjust the carrying amount of the note to its face value over time.

The Discount on Notes Payable Account Is Always Used When