Match the Terms with the Definitions

question 90

Multiple Choice

Match the terms with the definitions.
-A written promise to pay a specific sum at a definite future date.

• A)accrued interest on notes payable
• B)time
• C)proceeds (note receivable)
• D)principal of the note
• E)notes payable register
• F)credit advice
• G)maturity value
• H)discounting a note receivable
• I)dishonored
• J)effective rate
• K)promissory note
• L)maker

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Definitions:

Store Equipment

Fixed assets like shelves, registers, and computers used in the operation of a retail store.

Periodic Inventory Method

An accounting method where inventory is physically counted and valued at specific intervals.

Voucher Payment

Voucher payment involves the use of a voucher system where approval documents are prepared and used as the basis for making payments to vendors.

Net Method

An accounting practice where discounts for early payment are assumed to be taken and purchase or sale transactions are recorded at the net, discounted amount.