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)Face Value.
D)Cash.
E)Accounts Payable.

Question

Quizplus · Accepted Answer

The difference between the amount received from issuing a note payable and the amount repaid at maturity is the interest paid on the note. Principal refers to the original amount borrowed, face value is the amount stated on the note, cash is the monetary asset received or paid, and accounts payable refers to amounts owed to third parties for goods or services purchased on credit.

The Difference Between the Amount Received from Issuing a Note