Accounting Dictionary


Principal is a word that means amount borrowed.

If a person borrowed $1,000 for a year at 10% interest, at the end of a year he would have to repay $1,100. $1,000 of this amount is the repayment of the original $1,000 he borrowed. The $1,000 is the principal. The remaining $100 is the interest.

Sign Up to Learn More!

Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!

Scroll to Top