Questions from College Accounting

Q: Explain the parts of a promissory note.

Explain the parts of a promissory note.

Q: What is the difference between finding a maturity date by (a

What is the difference between finding a maturity date by (a) days or (b) months?

Q: Notes Receivable is a current liability on the balance sheet. Accept

Notes Receivable is a current liability on the balance sheet. Accept or reject. Why?

Q: Why is a subsidiary ledger not needed for notes?

Why is a subsidiary ledger not needed for notes?

Q: Only matured notes are listed in the Notes Receivable account. Agree

Only matured notes are listed in the Notes Receivable account. Agree or disagree? Please discuss.

Q: Explain what will happen if a maker defaults on a note.

Explain what will happen if a maker defaults on a note. (Assume that the note has not been discounted.)

Q: What is the normal balance of each creditor in the accounts payable

What is the normal balance of each creditor in the accounts payable subsidiary ledger?

Q: List the four steps to arrive at proceeds in the process of

List the four steps to arrive at proceeds in the process of discounting a note.

Q: What is meant by a contingent liability?

What is meant by a contingent liability?

Q: Why would a manager prefer the perpetual inventory system over the periodic

Why would a manager prefer the perpetual inventory system over the periodic system of inventory?