A business is holding a note receivable and wishes to cash it in before its maturity date by selling it to a bank.If the business receives more than the maturity value of the note,the difference is treated as:

Question

Quizplus · Accepted Answer

When a business receives more than the maturity value of a note receivable by selling it to a bank, the difference is treated as interest revenue because it represents additional income earned from the financial transaction, similar to earning interest on a loan or investment.

A Business Is Holding a Note Receivable and Wishes to Cash