On January 1, 2017, the Notes Receivable Account Has a Balance

question 86

Multiple Choice

On January 1, 2017, the Notes Receivable account has a balance of $12,000. On December 31, 2017, the Notes Receivable account has a balance of $80,000. No collections on notes receivable occurred in 2017. What amount of long-term notes were made in 2017?

• A)$12,000
• B)$68,000
• C)$80,000
• D)$92,000

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Definitions:

Negligence

A failure to take reasonable care to avoid causing injury or loss to another person, which can lead to legal liability.

Business Liability Policy

An insurance policy that protects a company from financial loss resulting from liabilities such as accidents, injuries, or negligence.

Claim

A demand for something as due, particularly money, property, or legal relief, often the subject of legal action.

Insurer Duty

The obligations that an insurance company has toward its policyholders, including the duty to act in good faith and to pay valid claims.