The difference between the amount received from issuing a note payable and the amount repaid at maturity is referred to as:
A)Interest.
B)Principle.
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 known as interest, which represents the cost of borrowing money. Principle is the amount borrowed, face value is the amount stated on the instrument, cash refers to the actual money received or paid, and accounts payable pertains to amounts owed to suppliers or vendors for goods or services received.

The Difference Between the Amount Received from Issuing a Note