Questions: The time between the date a note is issued and the due date of the note is the
Transcript text: The time between the date a note is issued and the due date of the note is the
Solution
The answer is the second one: term.
Explanation for each option:
Discount period: This refers to the time frame during which a discount is available for early payment of a note or invoice. It is not the general time between the issuance and the due date of a note.
Term: This is the correct answer. The term of a note is the period between the date the note is issued and its due date. It represents the total time the borrower has to repay the note.
Days' sales in receivables: This is a financial metric that indicates the average number of days it takes for a company to collect its accounts receivable. It is not related to the time period of a note.
Note turnover: This term typically refers to the frequency with which notes are issued and paid off within a certain period. It does not describe the time between the issuance and due date of a single note.
In summary, the term of a note is the period between its issuance and due date.