| Full disclosure principle | Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
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| Installment note | Liability requiring a series of periodic payments to the lender.
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| Interest | Charge for using money (or other assets) loaned from one entity to another.
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| Maker of the note | Entity who signs a note and promises to pay it at maturity.
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| Maturity date of a note | Date when a note's principal and interest are due.
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| Mortgage | Legal loan agreement that protects a lender by giving the lender the right to be paid from the cash proceeds from the sale of a borrower's assets identified in the mortgage.
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| Note payable | Liability expressed by a written promise to pay a definite sum of money on demand or on a specific future date(s).
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| Payee of the note | Entity to whom a note is made payable.
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| Principal of a note | Amount that the signer of a note agrees to pay back when it matures, not including interest.
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| Promissory note (or note) | Written promise to pay a specified amount either on demand or at a definite future date; is a note receivable for the lender but a note payable for the lendee.
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| Times interest earned ratio | Ratio of income before interest expense (and any income taxes) divided by interest expense; reflects risk of covering interest commitments when income varies.
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