What Is the Distinguishing Characteristic Between Accounts Receivable and Notes

question 165

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 if not paid within the usual credit terms.
• 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 result from a written promise to pay within a specified amount of time.

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Definitions:

Recession

A temporary downturn in economic activity, characterized by decreased trade and industrial production, usually recognized by consecutive quarters of declining GDP.

Expected Price Level

The price level consumers, producers, and investors anticipate in the future, influencing their economic decisions in the present.

Wage Bargaining

The negotiation process between employees (or their representatives) and employers regarding the terms of employment, focusing primarily on salary or wage levels.

Long Run

A period in which all factors of production and costs are variable, and firms can adjust all inputs.