When referring to a note receivable or promissory note

A) the maker is the party to whom the money is due
B) the note is not considered a formal credit instrument
C) the note cannot be factored to another party
D) the note may be used to settle an account receivable

Note Receivable

A financial claim against another entity that promises to pay the holder a specific sum of money on a certain date or on demand.

Promissory Note

A financial document in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.

Account Receivable

Resources that a company has yet to receive payment for from customers, regarding delivered goods or services.