A(n)________ Clause Permits the Maker to Pay the Amount Due

question 72

Multiple Choice

A(n) ________ clause permits the maker to pay the amount due prior to the due date of the instrument.

• A) usury
• B) pre-payment
• C) acceleration
• D) due-on-sale
• E) extension

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Definitions:

Owner Withdraws

Transactions where the owner of a sole proprietorship takes out cash or other assets from the business for personal use.

General Journal

A comprehensive record where all financial transactions of a business are originally entered before being transferred to specific accounts in the general ledger.

Cash Payments Journal

A financial journal that records all cash payments or outflows of a business.

Sales Journal

A specialized accounting journal used to record all sales transactions of a business.