Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Notes Receivable

Financial Accounting

7. Receivables and Investments

Notes Receivable

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Multiple Choice

The maturity date of a note receivable:

is the date the note was originally issued.

is the date on which the principal and interest are due to be paid.

is the date the note is recorded in the accounting records.

is the date the note is endorsed to another party.

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Verified step by step guidance

Understand the concept of a note receivable: A note receivable is a written promise from a debtor to pay a specific amount of money, usually with interest, at a future date.

Define the term 'maturity date': The maturity date is the date on which the principal amount of the note and any accrued interest are due to be paid by the debtor to the creditor.

Differentiate between the options provided: Analyze each option to determine its relevance to the definition of the maturity date.

Option analysis: (1) The date the note was originally issued refers to the creation of the note, not its maturity. (2) The date the note is recorded in accounting records is the bookkeeping entry date, not the maturity date. (3) The date the note is endorsed to another party refers to transferring ownership, which is unrelated to maturity.

Conclude that the correct answer is: 'The date on which the principal and interest are due to be paid,' as this aligns with the definition of the maturity date in financial accounting.