1- In calculating interest on a note, it is necessary to take which of the following factors into consideration?

a.the principal

b.the maker

c.the payee

d.the bank

2- Maturity value minus the discount amount is called the

a.discount.

b.principal.

c.proceeds.

d.maturity value.

3- A $6,700, 8.5% note is dated April 10 and is due in 75 days. The maturity value of the note would be

a.$6,800.00.

b.$7,500.00.

c.$6,818.65.

d.$7,075.00.

4-If the maker of a note does not pay or renew a note at maturity, the note is said to be

a.dishonored.

b.discontinued.

c.dismantled.

d.discounted.

5- The one who is to receive the specified amount of money from a note is called the

a.payee of the note.

b.discounter of the note.

c.endorser of the note.

d.maker of the note.

6- Face value of a note plus interest is called the

a.discount.

b.principal.

7- When a note is received from a customer to obtain an extension of time for payment on a past-due account, the journal entry would include

a.debiting Accounts Payable and crediting Notes Payable.

b.debiting Accounts Receivable and crediting Notes Receivable.

c.debiting Notes Receivable and crediting Accounts Receivable.

d.debiting Notes Payable and crediting Accounts Payable.

c.proceeds.

d.maturity value.