Notes receivable terms (Learning Objective 6) 10–15 min.

Match the term with its definition by placing the corresponding letter in the space provided:

_____1. A written promise to pay a specified amount of money at a particular future date.

_____2. The date when final payment of the note is due; also called the due date.

_____3. The percentage rate of interest specified by the note for one year.

_____4. The entity to whom the maker promises future payment.

_____5. The period of time during which interest is earned.

_____6. The amount loaned out by the payee and borrowed by the maker of the note.

_____7. The sum of the principal plus interest due at maturity.

_____8. The entity that signs the note and promises to pay the required amount.

_____9. The revenue to the payee for loaning money; the expense to the debtor.

a. Interest

b. Note term

c. Interest rate

d. Maker of the note

e. Maturity date

f. Maturity value g. Payee of the note h. Principal i. Promissory note.

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