Adv. Accounting - Ch. 10 Review

Match it! Select the correct answer from the pull down...Good luck!

If the maturity date of a note is in a fiscal period that is different from the date of the note, an adjusting entry will be needed at the end of the fiscal period.

If a business accepts a large number of notes receivable, it may maintain a separate ledger, similar to the accounts receivable ledger.

A note that is not paid when due is called a(n)

A company may issue notes receivable to employees (FYI-p. 292).

If unearned revenue is first recorded as a liability, no adjusting or reversing entry is required.

When unearned revenue is recorded, the amount to be received in the future is not yet known.

Interest rates on notes receivable are generally stated in terms of days, since most notes receivable are for 90 days or less.

When the note receivable from a customer is not paid when it comes due, the business transfers the maturity value of the note to the accounts receivable account.