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:

Supply Chain Processes

The series of steps involved in producing and distributing goods, from raw materials to the delivery of finished products to consumers.

Decision Phases

The stages in the decision-making process, typically including identification, development, and selection.

Supply Chain

The entire process of making and selling commercial goods, including production, handling, transportation, and distribution, from raw materials to the final customer.

Push/Pull View

The Push/Pull View of supply chains differentiates between processes that are driven by forecasted demand (push) and processes that are activated by customer demand (pull).