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Which of the Following Names Is Correct

question 53

Multiple Choice

Which of the following names is correct?


Definitions:

Dishonoring

Dishonoring occurs when a promised payment, such as a check or electronic payment, is not completed due to insufficient funds or rejection by the bank.

Note Receivable

A written promise for a specified amount of money to be paid by a debtor at a certain future date.

Principal

The original sum of money borrowed in a loan or the initial amount of investment, excluding any interest or profits.

Interest

A payment made for the use of borrowed money, usually calculated as a percentage of the principal amount.

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