Which Is One of the Main Differences Between a Note

question 74

Multiple Choice

Which is one of the main differences between a note payable and a bond payable?

• A) a fixed maturity date
• B) interest payments
• C) security
• D) not usually traded on a public stock exchange

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Definitions:

Principal

An amount of money that is loaned or invested, excluding any interest or profit earned on it.

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid according to the agreement.

Accounts Payable

The amount a company owes to suppliers for goods and services purchased with credit.