Multiple Choice
Which of the following statements is not true when FLK Company discounts a note receivable to the bank?
A) FLK may ultimately have to pay the bank when the note is due.
B) If the maker of the note pays the bank on time,no liability will result to FLK.
C) FLK will receive the maturity value from the bank.
D) A contingent liability arises for FLK.
Correct Answer:
Verified
Correct Answer:
Verified
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