Suppose a customer is unable to pay its account on time, so the company accepts a six-month interest-bearing note receivable to replace the customer's account receivable. What effect will accepting the note receivable have on the company's financial statements at the time of acceptance?
A) Total assets decrease.
B) No change in total assets.
C) Total revenues increase.
D) Total assets increase.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose a customer is unable to pay its account on time, so the company accepts a six-month interest-bearing note receivable to replace the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Sasha has been running a bicycle delivery service for more than a year. Her business is going well, but she is having a hard time managing her accounts and keeping up with her budget. What would be a good business decision for her to make?
Answers (1)
Carson County State Bank has a ratio of equity capital to total assets of 2.5%. The FDIC which regulates this bank has determined that this is not enough equity capital and is making the bank issue new stock in the market.
Answers (1)
An important difference between accounting and other business functions, such as marketing and management, is that:
Answers (2)
Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5-year period, the costs associated with one product line were as follows: first cost of $20,000, and annual costs of $16,000.
Answers (1)
An accelerated depreciation method: A) Recognizes more depreciation expense in the early years of an asset's useful life and less in the later years. B) Results in reporting higher earnings every year.
Answers (1)
New Questions in Business
Suggestive selling, accepting credit cards as payment, and expanding operating hours to 24 hours are strategies used by the fast food industry to
Answers (1)
How much student loan interest is tax deductible 2016?
Answers (1)
Tracy company, a manufacturer of air conditioners, sold 100 units to thomas company on november 17, 2013. the units have a list price of $500 each, but thomas was given a 30% trade discount. the terms of the sale were 2/10, n/30.
Answers (1)
The Hamada Company sales for 2018 totaled $150,000 and purchases totaled $95,000. Selected January 1, 2018, balances were: accounts receivable, $18,000; inventory, $14,000; and accounts payable, $12,000.
Answers (1)
Jim is evaluating project that will pay him $5,000 per year for 5 years, and then cost him $4,000 per year for 12 years. Jim's opportunity cost of capital for this project is 18 percent.
Answers (1)