payee correct answer: the person or business to whom the amount of a note is payable
principal correct answer: the original amount of a note,
... [Show More] sometimes referred to as the face amount
interest rate correct answer: the percentage of the principal that is due for the use of the funds secured by a note
maturity date correct answer: the date on which the principal of a note is due to be repaid
time of a note correct answer: the length of time from the signing date of a note to the maturity date
maturity value correct answer: the amount that is due on the maturity date of a note
interest income correct answer: the interest earned on money loaned
dishonored note correct answer: a note that is not paid when due
false correct answer: total assets are reduced when a business accepts a note receivable from a customer needing an extension of time to pay an account receivable
true correct answer: the accounting concept Neutrality is applied when the process of making accounting estimates is free from bias
true correct answer: a business having a 400 debit balance in allowance for uncollectible accounts and estimating its uncollectible accounts aging to be 5000 would record a 5400 credit to allowance for uncollectible accounts
false correct answer: the direct write off method complies with generally accepted accounting principles
false correct answer: the direct write off method matches the expense of uncollectible accounts to the revenue that is earned in the same period
false correct answer: annual straight line depreciation expense of plant assets is calculated as the original cost of the plant divided by the years of estimated useful life
false correct answer: estimated federal income tax must be paid in monthly installments
true correct answer: all accounts are listed on the unadjusted trial balance regardless of whether there is a balance or not
true correct answer: functional depreciation should be considered in estimating the useful life of computer equipment
true correct answer: the value of insurance coverage is recorded as a debit to insurance expense
true correct answer: the book value of a plant asset is its original cost minus accumulated depreciation [Show Less]