ACCT 2001 Lecture Notes - Lecture 24: Promissory Note, Weighted Arithmetic Mean, Current Asset

• School: UConn
• Department: Accounting
• Course: ACCT 2001
• Professor: Leanne Adams

Document Summary

Understanding business issues: most businesses need to respond to changing market conditions and borrow money on a short-term basis to finance investments. Promissory notes: promissory note->an unconditional written promise to pay a definite sum of money on demand or at a future date, maker-> person promising to pay, payee->person promised payment, major characteristics. It must be written and signed by the maker. It must contain an unconditional promise to pay money. It must be payable to a bearer (person holding the note) or to a stated person (the payee) It must be payable either on demand or at a specific time. Computations for promissory notes: maturity date of notes, maturity date -> the date on which payment of a note is due, other ways to state a maturity date. A specific number of months or years after the date on the note. A specific number of days after the date on the note.