Which of the Following Is Not True Regarding Promissory Notes

question 49

Multiple Choice

Which of the following is not true regarding promissory notes?

• A)Promissory notes are not shown at carrying amount 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:

Coin Collection

An assortment of coins, often categorized by era, region, or special interest, that is accumulated for personal or investment purposes.

Expression Intent

The demonstration of a party's intention to undertake a particular action, often formalized through a legal or official statement.

Catalogue Showcasing

The display or listing of products in a catalog format, aimed at providing detailed information to customers for the purpose of promoting sales.

Invitation Negotiate

A proposal or offer made with the intention of engaging another party in negotiations to reach a mutual agreement.