| A | B |
|---|
| Accrued Interest Expense | Interest incurred but not yet paid |
| Bank Discount | Interest collected in advance on a note |
| Board of Directors | A group of persons elected by the stockholders to manage a corporation. |
| Book Value | The difference between an asset's account balance and its related contra account balance. |
| Creditor | A person or organization to whom a liability is owed. |
| Date of a Note | The day a note is issued. |
| Declaring a Dividend | Action by a board of directors to distribute corporate earnings to stockholders. |
| Dividends | Earnings distributed to stockholders. |
| Interest | An amount paid for the use of money for a period of time. |
| Interest Income | The interest earned on money loaned. |
| Interest rate of a note | The percentage of the principal that is paid for the use of the money. |
| long-term liabilities | Liabilities owed for more than a year. |
| maturity value | The amount that is due on the maturity date of a note. |
| non-interest-bearing note | A promissory note that requires only the payment of the principal when the note is due. |
| notes payable | Promissory notes that a business issues to creditors. |
| number of a note | The number assigned by the maker to identify a specific note. |
| payee of a note | The person or business to whom the amount of a note is payable. |
| principal of a note | The original amount of a note. |
| proceeds | The amount received for a note after the bank discount has been deducted. |
| promissory note | A written and signed promise to pay a sum of money at a specified time. |
| ratio | A comparison between two numbers showing how many times one number exceeds the other. |
| retained earnings | An amount earned by a corporation and not yet distributed to stockholders. |
| reversing entry | An entry made at the beginning of one fiscal period to reerse an adjusting entry made in the previous fiscal period. |
| statement of stockholder's equity | A financial statement that shows changes in a corporation's ownership for a fiscal period. |
| stockholder | An owner of one or more shares of a corporation. |
| time of a note | The days, months, or years from the date of issue until a note is to be paid. |
