When an interest-bearing note matures the balance in the Notes Payable account is
A) less than the total amount repaid by the borrower.
B) the difference between the maturity value of the note and the face value of the note.
C) equal to the total amount repaid by the borrower.
D) greater than the total amount repaid by the borrower.

Question

Quizplus · Accepted Answer

When an interest-bearing note matures, the balance in the Notes Payable account represents the principal amount borrowed. The total amount repaid by the borrower includes both this principal and the accrued interest, making the repayment amount greater than the Notes Payable balance.

When an Interest-Bearing Note Matures the Balance in the Notes