Match the Terms with the Definitions

question 43

Multiple Choice

Match the terms with the definitions.
-The procedure, which banks often use, of deducting interest in advance when making a loan.

• A)term of the note
• B)accrued interest on notes receivable
• C)bank discount (note payable)
• D)bank discount (note receivable)
• E)contingent liability
• F)rate of interest
• G)discounting (note payable)
• H)payee
• I)notes receivable register
• J)non-interest-bearing note
• K)interest-bearing note

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Definitions:

Punitive Damages

Monetary compensation awarded to an injured party that goes beyond what is necessary to compensate for losses and is intended to punish the wrongdoer.

Arbitration

A method of resolving disputes outside of court through the decision of one or more arbitrators.

Exculpatory Clause

A contract provision that releases one party from liability for their wrongful acts to the other party.

Tort Liability

A legal responsibility arising from civil wrongs not based on contractual obligations, causing harm or loss to another person or entity, leading to potential compensation for damages.