Interest must be accounted for on all long-term notes receivable whether the interest rate is stated or not.

Name: Interest must be accounted for on all long-term notes receivable whether the interest rate is stated or not.
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Question

Quizplus · Accepted Answer

This is true. The interest on all long-term notes receivable must be accounted for, even if the interest rate is not stated. This is because, in the absence of a stated interest rate, the interest is implied and must be calculated based on market rates.

Interest Must Be Accounted for on All Long-Term Notes Receivable