Asked by Judith Parsons on May 31, 2024
Verified
Interest is usually associated with
A) accounts receivable.
B) notes receivable.
C) doubtful accounts.
D) bad debts.
Notes Receivable
A claim or right to receive a determinable sum of money from another party as evidenced by a promissory note.
Interest
The cost of borrowing money or the return on invested funds, generally expressed as a percentage rate over a period of time.
- Acquire insight into the importance of structured credit tools such as notes receivable.
Verified Answer
NC
Nicholas CrolweyJun 07, 2024
Final Answer :
B
Explanation :
Interest is typically associated with notes receivable because these are formal promissory notes that often include terms for interest payments.
Learning Objectives
- Acquire insight into the importance of structured credit tools such as notes receivable.