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Details Title: Chapter 4 Review Description: Notes Receivable Total Flash Cards: 26 Created: 10/18/2004 16:12:24	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Promissory Note Definition written promise to pay a certain sum of money on a specific date Term Principal Definition the amount being borrowed Term Maturity Date Definition specific day on which the note must be paid Term Term Definition the length of time the borrower has to repay the note Term Face Value Definition the amount written on the facoe of the note Term Payee Definition the person or business to whom the note is payable Term Interest Definition fee charged for the use of money Term Maker Definition the person promising to repay the principal plus interest Term Interest-Bearing Note Definition a note that requires the principal plus interest to be repait at maturity Term Notes Receivable Definition a promissory note that a business accepts from a customer Term Maturity date Definition the period of time between the date the note receivable is sold to the bank and the maturity date of the note Term Accrual Basis of Accounting Definition recognizes revenue when earned and expenses when incurred Term Protest Fee Definition the bank charge to the endorser for a dishonored, discounted note Term Proceeds Definition the maturity value minus the bank discount Term Contingent Liability Definition exists when the endorser of a discounted note agrees to pay the note at maturity if it is not paid by the maker Term Bank Discount Definition interest charge the bank deducts in advance at the time the note is issued Term Accrued Revenue Definition revenue earned but not yet received or recorded Term Dishonored Note Definition note that is not paid or renewed at the maturity date Term Discounting Notes Receivable Definition selling notes receivable to a bank for cash rather than holding them until maturity Term Issue Date Definition date on which the note is written Term Maturity Value Definition the principal plus the interest that must be paid Term Conservatism Principle Definition the accountant is conservative when reporting the financial condition of a company Term Draft Definition order by by one party (drawer) to another party (drawee) to pay a certain sum of money to a third party (payee) Term Interest Rate Definition the amount of interest expressed as a percentage of the principal Term Negotiable Intrusment Definition financial document that transfers ownership from one person to another Term Notes Receivable Past Due Definition note that has been dishonored