Accounting for Non-Interest & Interest-Bearing Notes


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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?

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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?

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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