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Accounting 1 Chapter 20

creditor a person or organization to whom a liability is owed
current liabilities liabilities due within a short time, usually within a year
date of a note the day a note is signed
dishonored note a note that is not paid when due
interest an amount paid for the use of money for a period of time
interest expense the interest accrued on money borrowed
interest income the interest earned on money loaned
interest rate of a note the percentage of the principal that is paid for use of the money
maker of a note the person or business who signs a note and thus promises to make payment
maturity date of a note the date a note is due
maturity value the amount that is due on the maturity date of a note
notes payable promissory notes signed by a business and given to a creditor
notes receivable promissory notes that a business accepts from customers
number of a note the number assigned to identify a specific note
payee of a note the person or business to whom the amount of a note is payable
principal of a note the original amount of a note; sometimes referred to as face amount of a note
promissory note a written and signed promise to pay a sum of money at a specified time
time of a note the days, months, or years from the date of signing until a note is to be paid
Created by: mrs226