Which of the Following Is NOT a Similarity Between Notes

question 97

Multiple Choice

Which of the following is NOT a similarity between notes receivable and account receivables?

• A) They are both credit instruments.
• B) Both can be sold to another party.
• C) Both are valued at net realizable value.
• D) Both are due within 30 days.

---

Definitions:

Debt-to-equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, key in assessing financial leverage.

Assets

Resources owned by a business or individual that are expected to provide future economic benefits.

Equity

The value of an ownership interest in property or a business, after deducting liabilities from assets.

Return on Sales Ratio

A financial ratio that measures the efficiency of a company in generating operating profit from its revenue.