Match the terms with the definitions.
-The procedure, which banks often use, of deducting interest in advance when making a loan.
A)term of the note
B)accrued interest on notes receivable
C)bank discount (note payable)
D)bank discount (note receivable)
E)contingent liability
F)rate of interest
G)discounting (note payable)
H)payee
I)notes receivable register
J)non-interest-bearing note
K)interest-bearing note

Question

Quizplus · Accepted Answer

Bank discount (note payable) refers to the procedure banks use of deducting interest in advance when making a loan, which is also known as discounting.

Match the Terms with the Definitions