The difference between the amount received from issuing a note payable and the amount repaid at maturity is referred to as:
A) Interest.
B) Principal.
C) Accounts Payable.
D) Cash.
E) Face Value.

Question

Quizplus · Accepted Answer

The difference between the amount received from issuing a note payable and the amount repaid at maturity is referred to as interest, which is the cost of borrowing money.

The Difference Between the Amount Received from Issuing a Note