Ashort-term note payable with no stated rate of interest should be ! a. recorded at maturity value. b. recorded at the face amount. c. discounted to its present value. d. reported separately from other short-term notes payable.

A short-term note payable with no stated rate of interest should be discounted to its present value .

Option C

Explanation:

Short-term bills due are a legal contractual obligation to pay a particular amount within one year or during the same accounting period.

In other words, the term redemption, plus the interest on a certain date that will be one year or fewer in the future is a signed loan or promissory note between the creditor and the borrower.

Compared to a deposit, short-term payable notes are negotiable and can be exchanged by approving them between the parties.  

Suppose, for example Bill lends $1,000 to Raj. Raj signs a promissory note indicating that he will have to pay $1,000 plus 10% interest in six months to Bill.

After the first month, Bill determines that he needs some of his loans to be combined and he endorses the Raj-Tony promissory note, which is to pay back Tony's debt. Raj is now required to pay Todd the $1,000 plus the interest.

a.

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