07 Aug Qualitative Study Evaluation
1. As discussed in class, business transactions often involve the exchange of cash, property, goods or services for a note receivable. Read the section on recognition and describe how the amount of interest is determined in the following cases:
a) when the entity receives a note and provides cash to the borrower.
b) when the entity receives a note and provides property, goods or services to the buyer.
c) when the entity receives a note but must determine an imputed interest rate.
See attachment to answer the questions(a, b, c). You can find all the answers in the attachment doc, just rewrite the answers to your own word and explain the answers.
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