When a long-term note payable is issued, the entire amount should be initially recorded as a...

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When a long-term note payable is issued, the entire amount should be initially recorded as a...

When a long-term note payable is issued, the entire amount should be initially recorded as a long-term note payable.

YES OR NO ??

business accounting

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Answer 1

Answer #1

YES... When a long term note payable is issued, the entire amount should be initially recorded as a long term note payable only. Long term note payable is classified as one whose maturity is due over a period of more than 1 year. Same is reflected in liabilities side of balance sheet.

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