When a note matures, ________ on the books of the payee.

Question

Quizplus · Accepted Answer

When a note matures, the payee (the one who received the note) will receive the full amount of the principal plus the interest earned. This will increase the payee's interest revenue, as they are receiving income from the note. None of the other options are correct, as interest expense and notes payable are related to the payer (the one who issued the note) and notes receivable is a current asset account that does not change when the note matures.

When a Note Matures, ________ on the Books of the Payee