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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Definitions:

Federal Agencies

Organizations established by the federal government of the United States to perform specific functions and duties, including law enforcement, environmental protection, and social services.

Calcium

A chemical element with the symbol Ca and atomic number 20, essential for living organisms, particularly in cell physiology where its movement into and out of cells functions as a signal for many cellular processes.

Troponin

A complex of three regulatory proteins integral to muscle contraction in skeletal and heart muscles.

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems that is involved in muscle activation, memory, and cognition.