A Simple Loan Involves

question 23

Multiple Choice

A simple loan involves

• A) interest payments from the borrower to the lender periodically during the life of the loan.
• B) no payment of interest by the borrower to the lender.
• C) payment of interest by the borrower to the lender only at the time the loan matures.
• D) payment only of principal by the borrower to the lender at maturity.

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Definitions:

Supplies

Supplies are consumable items used in the daily operations of a business, such as office or cleaning materials, that are not resold to customers.

Petty Cash

A small amount of cash on hand used for minor, incidental expenses of a business.

Petty Cash Fund

A small amount of cash kept on hand for making minor payments.

Valid Receipts

Documents that serve as proof of a transaction, showing essentials like the date, items purchased or services rendered, and the amount paid.