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    Using Financial Accounting Study Set 1
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    Exam 9: Current Liabilities, Contingencies, and the Time Value of Money
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    If a Company Borrows Money from Its Bank and the Bank
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If a Company Borrows Money from Its Bank and the Bank

Question 50

Question 50

Multiple Choice

If a company borrows money from its bank and the bank deducts the interest in advance, the company would record the amount of the interest deduction as


A) prepaid interest.
B) a discount.
C) an expense.
D) a loss.

Correct Answer:

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