When money is borrowed by issuing a note payable,the borrower records a liability equal to the maturity value of the note.

Name: When money is borrowed by issuing a note payable,the borrower records a liability equal to the maturity value of the note.
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The borrower records a liability equal to the principal amount of the note payable at the time of borrowing, not the maturity value. The maturity value, which includes any interest, is recognized over the term of the loan.

When Money Is Borrowed by Issuing a Note Payable,the Borrower