Accounting for Non-Interest & Interest-Bearing Notes

Instructions:

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

question 1 of 3

What accounting term will you see in the journal entries of non-interest bearing notes but NOT in the journal entries for interest-bearing notes?

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. For which kind of note is there no direct interest payment?

2. What is the best way to calculate the difference between an interest-bearing note and a non-interest bearing note?

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

Using this worksheet and quiz, you can determine how much you know about accounting for zero-interest and interest-bearing notes. Loans and interest expense charges are some topics you need to know for the quiz.

Quiz & Worksheet Goals

You will be quizzed on the following topics:

  • Determining which loan option is better when presented with multiple options
  • Type of note that has no direct interest payment
  • Accounting term in the journal entries of non-interest bearing notes
  • Calculating interest expense charges
  • Figuring out implicit interest expenses

Skills Practiced

  • Reading comprehension - ensure that you draw the most important details from the lesson on accounting for non-interest and interest-bearing notes
  • Information recall - access the knowledge you have gained about calculating 'implicit' interest expenses on a non-interest bearing note
  • Distinguishing differences - compare and contrast main topics, such as accounting terms in journal entries of non-interest bearing notes and entries for interest-bearing notes

Additional Learning

Accounting for Non-Interest & Interest-Bearing Notes is a lesson you can use if you would like to understand more about:

  • How to account for interest-bearing and non-interest notes
  • Calculating discounts on note payable
  • Factors to consider when choosing a loan
Support