When a company discounts a promissory note at the bank,it receives cash at the same time it would if it held the note to maturity.

Question

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When a company discounts a promissory note at the bank, it receives cash immediately, which is before the note's maturity date, but the amount received is less than the face value of the note due to the discount (interest) charged by the bank.

When a Company Discounts a Promissory Note at the Bank,it