What does a payee have to do when he discounts a note receivable with a bank？
A. He has to collect the maturity value of the note on the discounting date.
B. He has to endorse the note.
C. He has to sell it to the note purchaser.
D. He has to get cash quickly.
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When the management of a business makes some decisions, it often refers to the normal income statement because the normal income statement is more useful.
A. Right
B. Wrong
C. Doesn't say
What is called discounting a note receivable？
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.
From the normal income statement we can see gross margin.
A. Right
B. Wrong
C. Doesn't say
How is discounting period calculated？
A. From December 9, 1994 to January 18, 1995.
B. The discounting period begins with the date of making the note and end with date of selling it to the note purchaser.
C. The number of the days is calculated from the date of discounting to the date of maturity.
D. The days of discounting period involve the discounting date and the maturity date.
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