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

Question

Quizplus · Accepted Answer

If the maker of a note does not pay at maturity, the note is no longer in force because it has expired. This means that the payee may take legal action to collect the amount owed, but the debtor no longer owes the payee automatically without legal intervention. Therefore, choice C is the best answer. Option A is incorrect as the debtor still has the obligation to pay. Option B is incorrect because interest revenue can be accrued before and after the maturity date. Option D is incorrect as the Accounts Receivable account increases for the amount of the note's principal and any accrued interest.

If the Maker of a Note Does Not Pay at Maturity