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How to Record Notes Receivable on a Balance Sheet

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

On which financial statement is a note receivable recorded?

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1. Calculate the interest on the following note: Principal amount of note = $6,000; annual interest rate = 7%; time period = 4 months.

2. The value of the note when it is issued is known as:

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About This Quiz & Worksheet

This online quiz and printable worksheet make it easy to gauge your knowledge of notes receivable on balance sheets. Multiple-choice questions ask you to select the best answer of four available. You will be tested on your problem-solving ability and knowledge of financial statements, balance sheets, and more.

Quiz & Worksheet Goals

Use this quiz and worksheet to assess your ability to:

  • Identify the financial statement on which a notes receivable is recorded
  • Problem solve by calculating the interest on a specific note
  • Recognize the name given to the value of a note when issued
  • Describe what the maturity value of a note includes
  • Pinpoint the section of the balance sheet in which notes receivable will appear

Skills Practiced

Use this quiz and worksheet to practice the following skills:

  • Information recall - access the knowledge you've gained regarding the financial statement and section of the balance sheet notes receivable appears
  • Problem solving - use acquired knowledge to solve practice problems asking you to calculate interest on a note
  • Distinguishing differences - compare and contrast topics from the lesson, such as the value of a note when issued and the maturity value of a note

Additional Learning

To better understand notes receivable on balance sheets, explore the accompanying lesson called How to Record Notes Receivable on a Balance Sheet. This lesson explores the following:

  • Definition of notes receivable, and how it is offered
  • Why notes receivable represents a stronger legal claim to assets than accounts receivable
  • Meaning of maturity date and income statement
  • Differences between honoring and dishonoring a note
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