17 terms

Accounting II - Chapter 20

Southwestern Century 21, General Journal Approach. Chapter 20 Vocab Words

Terms in this set (...)

number of a note
The number assigned to identify a specific note.
Date of a note
The day a note is signed
Payee of the note
The person or business to whom the amount of a note is payable.
Time of a note
The days, months, or years from the date of signing until a note is to be paid.
Principal of a note
The original amount of a note; sometimes referred to as face amount of a note.
Interest rate of a note
The percentage of the principal that is paid for use of the money.
Maturity date of a note
The date a note is due.
Maker of a note
The person or business who signs a note and thus promises to make payment.
Promissory Note
A written and signed promise to pay a sum of money at a specified time.
A person or oganization to whom a liability is owed.
Notes Payable
Promissory notes signed by a business and given to a creditor.
An amount paid for the use of moeny for a period of time.
Current Liabilities
Liabilities due within a short time, usually within a year.
Interest expense
The interest accrued on money borrowed.
Notes Receivable
Promissory notes that a business accepts from customers.
Interest Income
The interest earnd on money loaned.
Dishonored note
A note that is not paid when due.