A Promissory Note Received from a Customer in Exchange for an Account

question 108

Multiple Choice

A promissory note received from a customer in exchange for an account receivable is recorded by the payee as:

• A)A cash equivalent.
• B)An account receivable.
• C)A note receivable.
• D)A short-term investment.
• E)A note payable.

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Definitions:

Work Teams

Groups of employees who are assigned to collaborate and work together towards achieving a common goal or completing a specific project.

Team Performance

The level of productivity, efficiency, and effectiveness achieved by a group of individuals working together towards common goals or tasks.

Merit Pay

Is pay awarded to employees on the basis of the relative value of their contributions to the organization.

Relative Value

The importance or worth of something in comparison to other items, based on its utility, rarity, or desirability.