Companies record and report long-term notes receivable on a discounted basis.

Name: Companies record and report long-term notes receivable on a discounted basis.
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Question

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Companies typically record and report long-term notes receivable at their present value, which is usually discounted from the face value of the note. This is because the present value represents the expected future cash flows from the note, adjusted for the time value of money.

Companies Record and Report Long-Term Notes Receivable on a Discounted