Which statement is not correct about notes payable?
A)Notes payable are supported by a written promise to pay.
B)Non-interest bearing notes are recognized at their fair value.
C)Non-interest bearing notes are recognized at the transaction price.
D)Fair value can be estimated by using discounted cash flow.

Question

Quizplus · Accepted Answer

Non-interest bearing notes are recognized at their present value, not the transaction price, as they need to account for the time value of money.

Which Statement Is Not Correct About Notes Payable