If the Maker of a Note Does Not Pay at Maturity

question 34

Multiple Choice

If the maker of a note does not pay at maturity, ________.

• A) the debtor no longer owes the payee
• B) interest revenue cannot be accrued on the note before the maturity date
• C) the note is no longer in force because it has expired
• D) the Accounts Receivable account increases for the amount of the note's principal only

---

Definitions:

Low Dividend Policy

A corporate practice of distributing minimal portions of the company's earnings to its shareholders as dividends.

High Dividends

Refers to stocks or securities that offer a significant dividend payout in relation to their market price, often viewed as an indicator of a company's potential for long-term growth.

Cash Dividends

Payments made by a corporation to its shareholders, usually in the form of cash, out of its profits or reserves.

Dividend Yield

An economic measure demonstrating the amount a firm distributes in dividends per year as compared to its share price.