Match each description to the appropriate term (a-h).
-A formal, written instrument of credit that represents amounts due from customers
A)Face amount
B)Term
C)Interest
D)Maturity value
E)Dishonored note
F)Maker
G)Notes receivable
H)Interest rate

Question

Quizplus · Accepted Answer

"Notes receivable" is the term that refers to a formal, written instrument of credit that represents amounts due from customers.

Answer: F
 "Maker" refers to the person or entity that signs the note as the borrower and promises to repay the amount due.

Answer: A
 "Face amount" is the amount stated on the face of the note, which represents the principal amount borrowed.

Answer: D
 "Maturity value" refers to the total amount due on the note at its maturity date, which includes the face amount and any accrued interest.

Answer: H
 "Interest rate" refers to the percentage of the face amount that is charged as interest over the term of the note.

Answer: E
 "Dishonored note" is a note that has been presented for payment and has been refused or rejected by the borrower or maker.

Answer: B
 "Term" refers to the length of time over which the note is due and must be repaid, which is typically stated in months or years.

Match Each Description to the Appropriate Term (A-H)