Question

What are the 4 key events that occur with any note receivable?

Answer 1

The four key events that occur with any note receivable are issuance of the note, accrual of interest, collection of the note, and interest recognition.

Step-by-step explanation:

The four key events that occur with any note receivable are:

1. Issuance of the note: This is when the note is created and the borrower receives the funds.
2. Accrual of interest: Interest on the note begins to accrue over time according to the agreed-upon interest rate.
3. Collection of the note: This is when the borrower makes payments towards the principal and interest.
4. Interest recognition: The interest earned on the note is recognized as income by the lender.