An Unconditional Written Promise to Pay a Definite Sum of Money

question 9

Multiple Choice

An unconditional written promise to pay a definite sum of money on demand or on a defined future date (or dates) is a(n)

• A) unearned revenue
• B) prepaid expense
• C) account payable
• D) notes receivable
• E) account receivable

---

Definitions:

Fixed Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Special Offer

A promotional deal or discount aimed at encouraging consumers to buy a product or service.

Direct Materials

The raw materials that can be directly traced to the manufacturing of a product.

Remachine

The process of reworking or refurbishing a piece of machinery to restore its functionality or improve its performance.