Asked by Kiersten Deavy on Jul 21, 2024
Verified
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.
- Understand the practical usage and financial statement outcomes associated with interest-bearing and non-interest-bearing notes.
Verified Answer
Learning Objectives
- Understand the practical usage and financial statement outcomes associated with interest-bearing and non-interest-bearing notes.
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