Explain Why Short-Term Notes Often Have a Face Amount That

question 44

Essay

Explain why short-term notes often have a face amount that differs from the cash received upon signing a note payable. Describe what this difference represents.

---

Definitions:

Acoustic Encoding

The process of remembering and understanding something you hear.

Rehearsal

The cognitive process of repeatedly practicing or going over information to aid in memory retention.

Sensory Memory

A type of memory that holds sensory information for a few seconds or less after an item is perceived.

Procedural Memory

A type of long-term memory that enables individuals to perform tasks without conscious awareness, such as riding a bike or typing on a keyboard.