Accounting II Chap 8 Vocab Quiz

The day a note is issued.

• date of a note

• promissory note

• maturity date

• maturity date

Expenses incurred in one fiscal period, but not paid until a later fiscal period

• current liabilities

• interest expense

• accrued expenses

• prepaid expense

Liabilities that are due within a short time, usually a year.

• line of credit

• prepaid expense

• accrued expenses

• current liabilities

Obtaining capital by borrowing money for a period of time.

• debt financing

• prime interest rate

• line of credit

• non interest-bearing note

An amount paid for the use of money for a period of time.

• maturity value

• interest rate

• interest

• interest expense

Interest accrued on borrowed funds

• interest expense

• prepaid expense

• interest-bearing note

• principal

The percentage of the principal that is due for the use of the funds secured by a note

• interest

• interest rate

• promissory note

• notes payable

A note having a stated interest rate

• notes payable

• promissory note

• line of credit

• interest-bearing note

A bank loan agreement that provides immediate short-term access to cash

• reversing entry

• line of credit

• promissory note

• principal

The date on which the principal of a note is due to be repaid

• maturity date

• date of a note

• reversing entry