Self Assessment Quizzes

CHAPTER 26: Section 3 Notes Receivable

	1.	Accounts that track nonoperating revenue that a business receives outside the normal operations are called

		a.	other revenue
		b.	nonoperating revenue
		c.	miscellaneous revenue
		d.	interest income

	2.	Promissory notes that a business accepts from customers is called

		a.	permission slips
		b.	accounts receivable
		c.	notes receivable
		d.	cash receipts

	3.	The maturity value of a $9,500 sixty day note receivable with an interest rate of 9% is

		a.	$9,500
		b.	$9,781.08
		c.	$10,355
		d.	$9,640.54

	4.	The maturity value of an interest-bearing note equals

		a.	face value plus discount plus interest
		b.	face value
		c.	face value plus interest
		d.	face value less discount

	5.	The maturity value of a $14,000 120 day note with an interest rate of 7.5% would be

		a.	$13,654.80
		b.	$14,345.20
		c.	$15,050.00
		d.	$14,172.20

	6.	If a $5,000 interest-bearing note had an interest rate of 12% and a maturity value of $5,150 the term of the note would be

		a.	three months
		b.	90 days
		c.	six months
		d.	120 days