In Which of the Following Situations Is an Instrument Termed

question 81

Multiple Choice

In which of the following situations is an instrument termed as overdue?

• A)Where a check was made out 60 days ago.
• B)Where there is a default in payment of interest on a note,but not in the payment of the principal.
• C)Where the principal on a note is due in installments and an installment has not been paid.
• D)Where a note dated January 1 is payable "30 days after date" and is paid on January 31.

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Definitions:

Bond Interest

The periodic payment a bond issuer makes to bondholders for the use of borrowed funds, typically expressed as a fixed percentage of the principal.

Journal Entry

Journal Entry is a record in accounting that logs the debit and credit of a transaction in the general ledger, documenting financial transactions systematically.

Retirement

The period in life when an individual stops working on a full-time basis, typically supported by savings, pensions, or retirement plans.

Note Amortization Table

A schedule detailing each payment on an amortizing loan, including amounts allocated for principal and interest over a specified period.