If a company does not pay its note payable on the agreed upon date,the note:
A)is renewed automatically for the same period of time.
B)is discounted at a higher rate of interest.
C)is dishonored by the vendor.
D)is automatically placed in collection with an outside agency.

Question

Quizplus · Accepted Answer

If a company does not pay its note payable on the agreed upon date, the note is considered dishonored by the vendor. This could result in additional fees, legal action, and damage to the company's credit rating. The other options are not accurate as notes are not automatically renewed, discounted or placed in collection without further action or negotiation.

If a Company Does Not Pay Its Note Payable on the Agreed