Introduction
Welcome, financial adventurers, to the marvellous madness of tenor in accounting! If you’ve ever wondered why waiting can feel like an eternity in finance, you’re in the right place. We’re talking about the time that must elapse before a bill of exchange or promissory note becomes due. Let’s jazz up this ticking topic with humor and clarity.
The Tenor Tantrum: What Exactly Is Tenor?
Imagine this: you lend your friend $100 with a promissory note stating they will pay you back in 90 days. That 90 days… THAT is what we call tenor! It’s the countdown, the waiting game, the gap between now and when the money needs to return to Momma!
In accounting lingo,
