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    Fundamental Accounting Principles
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    Exam 8: Receivables
  5. Question
    When a Note Is Discounted to a Bank Without Recourse
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When a Note Is Discounted to a Bank Without Recourse

Question 129

Question 129

True/False

When a note is discounted to a bank without recourse, the bank assumes the risk of a bad debt loss and the original payee doesn't have a contingent liability.

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