A Promise to Pay Back a Certain Amount of Money

question 165

Multiple Choice

A promise to pay back a certain amount of money at a certain time is:

• A) a bond.
• B) future value.
• C) face value.
• D) a maturity date.

---

Definitions:

Credit Card Sales

Transactions where customers use credit cards to purchase goods or services, requiring merchants to process payments through a credit card network.

Direct Write-Off Method

An accounting method where uncollectible debts are charged directly to expense as they are identified.

Trade Receivables

The total amount of money owed to a company by its customers for goods or services delivered on credit.

Dishonored Note

A promissory note that has not been paid by its maker or endorser at the time of maturity.