Asked by Nadia Patel on Jun 17, 2024
Verified
Notes receivable are classified as current liabilities regardless of the time to maturity.
Notes Receivable
Claims against others, recorded by an entity, that are evidenced by promissory notes, indicating the others’ promises to pay specified amounts at predetermined dates.
Current Liabilities
Current liabilities are a company's debts or obligations due within one year, appearing on the balance sheet and requiring the use of current assets.
Time to Maturity
The remaining lifespan of a debt instrument, indicating the length of time until the principal amount must be repaid.
- Comprehend the taxonomy and impact of notes receivable on financial statement presentations.
Verified Answer
HC
hannah carpenterJun 23, 2024
Final Answer :
False
Explanation :
Notes receivable are assets, not liabilities.
Learning Objectives
- Comprehend the taxonomy and impact of notes receivable on financial statement presentations.