The Difference Between the Amount Received from a Note Payable

question 4

Multiple Choice

The difference between the amount received from a note payable and the amount repaid is

• A)interest.
• B)principal.
• C)face value.
• D)discount.
• E)premium.

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Definitions:

Economics

The social science that studies the production, distribution, and consumption of goods and services.

Physical Capital

Assets owned by a business that are tangible and can be used in the production process, such as machinery, buildings, and equipment.

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Equity shares representing ownership in Microsoft Corporation, a major technology company.

Natural Resources

All gifts of nature used to produce goods and services; includes renewable and exhaustible resources.