Asked by Jibreel Ahmad on Jun 26, 2024
Verified
The receivable that is usually evidenced by a formal instrument of credit is a(n)
A) trade receivable.
B) note receivable.
C) account receivable.
D) income tax receivable.
Formal Instrument
A legal document expressing an agreement, obligation, or right enforceable by law.
Note Receivable
A financial asset representing a written promise for the repayment of a specific amount of money, plus interest, by a debtor to the lender at a future date.
- Distinguish between different kinds of receivables and grasp the origins of each.
Verified Answer
CL
Cristina LariosJul 02, 2024
Final Answer :
B
Explanation :
A note receivable is typically evidenced by a formal instrument of credit, such as a promissory note, indicating the borrower's obligation to pay the amount owed.
Learning Objectives
- Distinguish between different kinds of receivables and grasp the origins of each.
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