A Demand Note Allows the Business to Borrow and Repay

question 104

True/False

A demand note allows the business to borrow and repay funds up to the maximum amount specified in the agreement throughout the year.

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Definitions:

Straight-Line Amortization

A method of calculating the gradual reduction in the cost value of an intangible asset over its useful life in fixed, equal amounts.

Bond Discount

Bond Discount occurs when the bond's market price is below its face value, indicating that it was sold for less than its original value.

Issued

Refers to the number of shares that a corporation has sold to investors or otherwise put into circulation.

Straight-Line Method

A method of depreciation that allocates an equal amount of depreciation each year over the useful life of an asset.