Question 1

A company signed a 90-day note on March 15 of the current year. The maturity sate of the note is

Accepted Answer

June 13

Answer

March 15

Answer

June 15

Answer

July 10

Question 2

When a note is paid at maturity, the credit is to Cash. The entry debits

Accepted Answer

Notes Payable for the principal of the note and Interest Expense for the interest due on the note.

Answer

Notes Payable for the maturity value of the note and Interest Expense for the interest due on the note

Answer

Notes Payable for the maturity value of the note

Answer

Notes Payable for the principal of the note and Interest Payable for the interest due on the note

Question 3

The date on which the principal of a note is due to be repaid is the

Accepted Answer

maturity date of a note

Answer

date of a note

Answer

interest date of a note

Answer

principal date of a note

Question 4

Obtaining capital by borrowing money for a period of time is called

Accepted Answer

debt financing

Answer

established a line of credit

Answer

issuing a promissory note

Answer

issuing a note payable

Question 5

An amount paid for the use of money for a period of time is called

Accepted Answer

interest

Answer

security

Answer

principal

Answer

bank charges

Question 6

The original amount of a note is called the

Accepted Answer

principal

Answer

maturity value

Answer

rate of the note

Answer

term of the note

Question 7

The interest accrued on borrowed fund is called

Accepted Answer

interest expense

Answer

prepaid interest

Answer

interest receivable

Answer

interest revenue

Question 8

A written and signed promise to pay a sum of money at a specified time is called a

Accepted Answer

promissory note

Answer

loan document

Answer

secured note

Answer

principal

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