1.

The current portion of the note payable as of December 31, 20x2 is equal to
a. D4 c. D5
b. D3 d. none

2. The noncurrent portion of the note payable as of December 31, 20x2 is equal to
a. E4 c. E3
b. D5 d. none of these

3. The sum of cell C4 and cell D4 is

a. equal to D3 c. 1M
b. equal to D5 d. none of these

4. The value of cell D6 is

a. equal to D3 c. 1M
b. equal to D5 d. zero

5. Which of the following statements about noninterest-bearing notes is false?

a. The face amount of a noninterest-bearing note may include both the principal and interest as
a single amount to be paid back at maturity date.
b. The principal amount of a noninterest-bearing note is its future cash flows discounted at its
effective interest rate.
c. The effective rate on a short-term noninterest-bearing note, with a specified term, cannot be
determined unless it is given on the face of the note.
d. Noninterest bearing is not a descriptive designation for this type of note because such notes
do bear interest.