Acc II Chapter 4 Vocabulary

Written agreement to pay a certain amount. 

• promissory note
• interest-bearing note
• draft
• proceed

Due date

• principal
• maturity date
• term
• trade acceptance

Amount of interest in percentage.

• principal
• face value
• interest rate
• interest

Fee charged for use of money

• term 
• face value
• interest-bearing note
• interest

Person to whom a note is payable

• maker
• draft
• principal
• payee

Amount being borrowed

• proceeds
• interest-bearing note
• principal
• interest

Amount of cash received when a business discounts a note. 

• interest
• proceeds
• principal
• maturity value

Interest charge bank deducts in advance for a note.

• bank discount
• interest
• proceeds
• face value 

Amount written on front of a note. 

• note receivable
• maturity value
• face value
• term

Notes a business sells to the bank for cash. 

• discounted notes receivable
• draft
• interest-bearing note
• note receivable