The
Definition Of

Dishonored note

A dishonored note is a note that is not paid in full at maturity. A dishonored note receivable is no longer negotiable. However, the payee still has a claim against the maker of the note. Therefore the note holder usually transfers the Notes Receivable account to an Account receivable.

Share it:

More from this Section

  • State unemployment taxes
    State unemployment taxes refer to taxes that are imposed on the employer by states that provide benefits to employees who lose their jobs.
  • Process cost systems
    Process cost systems refer to an accounting system that used to apply costs to similar products that are mass-produced in a continuous fashion. Once production begins...
  • Outstanding stock
    Outstanding stock means the number of shares of issued stock that are being held by stockholders.
  • Total labor variance
    Total labor variance is the difference between actual hors times the actual rate and standard hours times the standard rate for labor.
  • Master budget
    The term “budget” is actually a shorthand term to describe a variety of budget documents. All of these documents are combined into a master budget. The master budget is a set...
  • Corporation
    A business organized as a separate legal entity under state corporation law and having ownership divided into transferable shares of stock is a corporation.
  • Receivables turnover
    Receivables turnover is a measure of the liquidity of receivables during the period; computed by dividing net credit sales (net sales less credit sales) by average net receivables.