Busy. Please wait.
or

show password
Forgot Password?

Don't have an account?  Sign up 
or

Username is available taken
show password

why


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
We do not share your email address with others. It is only used to allow you to reset your password. For details read our Privacy Policy and Terms of Service.


Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Don't know
Know
remaining cards
Save
0:01
To flip the current card, click it or press the Spacebar key.  To move the current card to one of the three colored boxes, click on the box.  You may also press the UP ARROW key to move the card to the "Know" box, the DOWN ARROW key to move the card to the "Don't know" box, or the RIGHT ARROW key to move the card to the Remaining box.  You may also click on the card displayed in any of the three boxes to bring that card back to the center.

Pass complete!

"Know" box contains:
Time elapsed:
Retries:
restart all cards
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Accounting ll

Ch. 23 vocab

QuestionAnswer
Business transactions are stated in numbers that have common values; that is, using common unit of measurement. Unit of Measurement
A written and signed promise to pay a sum of money at a specified time. Promissory note
A person or organization to whom a liability is owed. Creditor
Promissory notes signed by a business and given to a creditor. Notes Payable
The person or business to whom the amount of a note is payable. Payee of a note
The date a note is due. Maturity date of a note
The percentage of the principal that is paid for use of the money. Interest rate of a note
The person or business who signs a note and thus promises to make payment. Maker of a note
The original amount of a note; sometimes referred to as face amount of a note. Principal of a note
The days, months, or years from the date of signing until a note is to be paid. Time of a note
FYI -- Advantage of notes Notes have an advantage over oral promises and accounts receivable or payable. Notes can be useful in a court of law as written evidence of a debt.
An amount paid for the use of money for a period of time. Interest
The amount that is due on the maturity date of a note. Maturity value
FYI – Time expressed The time between the date a note is signed and the date a note is due is typically expressed in days. The maturity date is calculated by counting the exact number of days.
FYI – Bank year (# days) Agencies of the federal government generally use a 365-day year when calculating interest. Consumer interest is also generally calculated on a 365-day year. However, many banks use a 360-day year when calculating interest.
Liabilities due within a short time, usually within a year. Current Liabilities
A source document is prepared for each transaction. Objective Evidence
The interest accrued on money borrowed. Interest Expense
FYI – Interest Expense classification Interest expense is a financial expense rather than an expense of the business's normal operations. Therefore, Interest Expense is listed in a classification titled Other Expenses in a chart of accounts.
FYI – Extension of time A business may ask for an extension of time if it is unable to pay an account when due. The vendor may ask the business to sign a note payable. The note payable does not pay the amount owed to the vendor. Form changed to note payable from account payable.
Promissory notes that a business accepts from customers. Notes Receivable
The interest earned on money loaned. Interest income
FYI – Interest Income classification Interest income is investment revenue rather than revenue from normal operations. Therefore, Interest Income is listed in a classification titled Other Revenue in a chart of accounts.
A note is not paid when due. Dishonored note
Created by: mmincy