首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
A note receivable is a negotiable instrument, which means it is readily transferable from one business or person to another and
A note receivable is a negotiable instrument, which means it is readily transferable from one business or person to another and
admin
2011-01-26
55
问题
A note receivable is a negotiable instrument, which means it is readily transferable from one business or person to another and may be sold for cash. To get cash quickly, payees sometimes sell a note receivable to another party before the note matures. The payee endorses the note and hands it over to the note purchaser--often a bank--who collects the maturity value of the note at the maturity date.
Selling a note receivable before maturity is called discounting a note receivable because the payee of the note receives less than its maturity value. This lower price decreases the amount of interest revenue the payee earns on the note. Giving up some of this interest is the price the payee is willing to pay for the convenience of receiving cash early.
Assume that the maturity date of the Dorman note is January 18, 1995 and that General Electric discounts the Dorman note at First City National Bank on December 9, 1994. The discount period--which is the number of days from the date of discounting to the date of maturity (this is the period the bank will hold the note) -- is 40 days; 22 days in December, and 18 days in January. Assume the bank applies a 12 percent annual interest rate in computing the discount value of the note. The bank will want to use a discount rate that is higher than the interest rate on the note in order to increase its earnings. GE may be willing to accept this higher rate in order to get cash quickly. The discounted value, called the proceeds, is the amount that GE receives from the bank. The proceeds are computed as follows:
General Electric’s entry to record discounting the note is:
Dec. 9, 1994cash $ 15 170
Note receivable Dorman Builders $ 15 000
Interest Revenue $ 170
TO RECORD DISCOUNTING NOTE RECEIVABLE
At maturity the bank collects 15 375 from the maker of the note, earning 205 of interest revenue.
Observe two points in the above computation: (1) The discounting is computed on the maturity value of the note (principal plus interest) rather than on the original principal amount, and (2) the discounting period extends backwards from the maturity date (January 18, 1995) to the date of discounting (December 9, 1994).
What is called discounting a note receivable?
选项
A、Purchasing a note receivable.
B、Receiving less money than the principal amount of the note.
C、Selling a note receivable before maturity.
D、Giving up some of tile interest revenue of the note.
答案
C
解析
转载请注明原文地址:https://jikaoti.com/ti/XApsFFFM
0
初级(银行综合类)
原金融专业英语(FECT)
金融英语(FECT)
相关试题推荐
A、adogB、apersonC、anactionB下一句以“棒球运动员”为例,所以此处应选aperson(人)而不是adog(狗)或anaction(行为)。
A、4:00p.m.B、3:30p.m.C、1:30p.m.C首先要读懂问题。去的地方是Sunnyvale,看一下时刻表,有两趟车从Pleasanton开往Sunnyvale。一趟早晨到,一趟下午3:30到。要在下午6:30与朋友碰面,当然选择
A、 B、 C、 A图中为三个不同的场景或地点,因此考查的应当是地点。句中直接提到了No.1MiddleSchool,因此答案是[A]。
BobandJimonceworkedinthesamefactory.Oneday,BoblentJimtendollars,butthenJimlefthisworkandwenttoworkina
情景:你是小明。你的美国朋友Steven给你寄来一张卡片。任务:请你用英语给他写一封50词左右的短信。内容包括:何时收到卡片的:你认为这张卡片怎样;你目前的情况;询问他何时来中国。
(a)解释对支票进行划线的含义。(1992年4月)(b)支票上载有“不可转让”字样的作用是什么?(1991年4月,1992年4月)(c)介绍签发一张“不可转让”支票的几种方法。(1992年4月)
BoscoKung最近当选为立法机构成员。他是一名商人,对立法事官了解很少。请就以下事项向他提出建议:(a)立法法案的功能;及(b)一项法案成为条例之前在立法机构经历的步骤。(1995年6月)
在香港,公开招股有限公司和私人有限公司有什么区别?公开招股公司必须是上市公司吗?(1992年l0月)
司法判例的意义是什么?(1989年4月,1990年9月,1993年4月,1994年10月)
TheWorld’sWildlifeNeedsYourHelpTheHalbergTrustisoffering$500,000towardsanycharityorotherorganizationinvolv
随机试题
在社会主义初级阶段,为经济建设提供政治保证的是()。
若近端肾小管重吸收率降低,则
患者男性,55岁,反复反酸、胃灼热1年,平卧时加重,口服法莫替丁20mg(每日2次),连用8周,症状缓解不明显,下一步要采取的措施
A.汞B.士的宁C.乌头碱D.二硫化二砷E.环氧二萜内酯雷公藤片含有的毒性成分是
麻醉药品处方至少保存
膜盒式压力表所用压力传感器测压的基本原理是基于()。
法人是相对于自然人而言的社会组织,是法律上的“拟制人”。作为一个社会组织,成为法人必须具备的法定条件为()。
侵犯的构成,主要有()方面的因素。
图为我国东南沿海某大城市郊区土地利用示意图。影响当地土地利用类型分布的主导因素是()。
作家和作者尽管只有一字之差,但境界却有天壤之别。作者可以自成一体、自娱自乐,但作家必须有美好的价值追求。正因为如此,作家要始终弘扬社会主义核心价值观,重品位、讲格调,保持思想品格和艺术品位,严肃认真考虑作品的社会效果,坚决抵制庸俗媚俗低俗之风,防止脱离生活
最新回复
(
0
)