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Chapter 20

TermDefinition
number of a note number assigned to identify a specific note
payee of a note to whom the amount of a note is payable
date of a note day a note is signed
time of a note days, months, or years from the date of signing until a note is to be paid
principal of a note (face amount of a note); original amount of note
maker of a note whom signs the note and promises to to make a payment
interest rate of a note % of principle that is paid for use of the money
maturity date of a note day note is due
promissory note written and signed promise to pay a sum of $ at a specified time
creditor to whom the liability is owed
notes payable promissory notes signed by a business and given to the creditor
interest amount paid for $ usage for a period of time
maturity value amount due at maturity date of note
current liabilities liabilities due within short time (usually a year)
interest expense interest accrued on borrowed $
notes receivable promissory notes accepted by business from customer
interest income interest earned on loaned $
dishonored note note not paid when due
Created by: Tate.cord70