What Is the Distinguishing Characteristic Between Accounts Receivable and Notes

question 95

Multiple Choice

What is the distinguishing characteristic between accounts receivable and notes receivable?

• A)Accounts receivable are usually current assets while notes receivable are usually long-term assets.
• B)Accounts receivable require payment of interest while notes receivable does not have payment of interest.
• C)Notes receivable result from credit sale transactions for merchandising companies, while accounts receivable result from credit sale transactions for service companies.
• D)Notes receivable generally specify an interest rate and a maturity date at which any interest and principle must be repaid.

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Final Substage

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