Which of the Following Is Not True Regarding Promissory Notes

question 2

Multiple Choice

Which of the following is not true regarding promissory notes?

• A)Promissory notes are not shown at net realizable value on the statement of financial position.
• B)Promissory notes are usually interest-bearing.
• C)Promissory notes give a stronger legal claim to the holder than accounts receivable.
• D)Promissory notes are frequently accepted from customers who need to extend the payment of an outstanding account receivable.

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Definitions:

Transformation

Transformation refers to the genetic alteration of a cell resulting from the direct uptake and incorporation of exogenous genetic material.

Acid Chloride

A compound derived from an organic acid by replacing its hydroxyl group with a chlorine atom, used in various organic syntheses.

Aldehyde

An organic compound characterized by the presence of a carbonyl group (C=O) bonded to at least one hydrogen atom.

Organic Product

Materials or substances originating from biological sources, especially those made up of carbon-based compounds.