Exam 4 Accounting

Question 1

What does a notes receivable represent?

Answer 1

lending transaction

Question 2

What does a notes Payable Represent?

Answer 2

borrowing transaction

Question 3

What is the borrower called?

Answer 3

maker

Question 4

what is a lender called?

Answer 4

payee

Question 5

Notes receivable coincides with the…

Answer 5

payee

Question 6

Notes Payable coincides with

Answer 6

maker

Question 7

What does a payee record?

Answer 7

asset

Question 8

what does a maker record?

Answer 8

liability

Question 9

A payee is…

Answer 9

lending cash, reinforcing past due accounts receivable, recording a revenue

Question 10

payee collects ______ on ______ date

Answer 10

maturity value, maturity

Question 11

what is maturity value?

Answer 11

principle plus interest

Question 12

what is maturity date?

Answer 12

due date

Question 13

A maker is…

Answer 13

borrowing cash, reinforcing past due accounts, recording the acquisition of as asset

Question 14

What is credit?

Answer 14

providing cash goods, or services in present with payment expected in future

Question 15

What does the maker due on the maturity due date?

Answer 15

pay the maturity value

Question 16

What does it mean when credit on open a