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Chapter 20
Accounting for Notes and Interest
18
Accounting
11th Grade
04/18/2011

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Cards

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