1) Which of the following is a financial instrument used by an entity to borrow money?

a) Bond

b) Check

c) Note Receivable

2) Camp Corporation issues bonds with a stated interest rate of 8%. The current market rate interest is 10% These bonds likely sold at:

a) per value

b) a discount

c) none of the above

3) A company issues a $2,000 6% note payable due un 4 months. How much interest will the company pay for this note?

a) $0

b)$30

c)$40

4) Which of the following statements is true?

i. A note payable can be classified as a current or long-term liability.

ii. Taxes payable are never current liabilities.

a) i only

b) ii only

c) both i and ii

5) When will long-term debt be considered a current liability?

a) never

b) always

c) whatever portion of the debt is due within one year of the balance sheet data will be considered current