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Chapter 20
Accounting for Notes and Interest
18
Accounting
12th Grade
01/10/2013

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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
Promissary 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
promissary noted signed by a business and given to a creditor
Term
Interest
Definition
an amount paid for the 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
liabilties due within a short time, usually within a year
Term
Interest expense
Definition
the interest accured on money borrowed
Term
Notes receivable
Definition
promissary noted signed by a business and given to a creditor
Term
Interest income
Definition
the interest accured on money loaned
Term
Dishonored note
Definition
a note that is not paid when due
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