Which of the Following Statements,regarding Notes Receivable,is Incorrect

question 50

Multiple Choice

Which of the following statements,regarding notes receivable,is incorrect?

• A) Notes receivable usually have longer terms than accounts receivable.
• B) A notes receivable is a written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future.
• C) All notes receivable are considered long-term assets.
• D) Notes receivable are sometimes called promissory notes.

---

Definitions:

Total Profit

The total amount of money gained from a business activity after all expenses and costs have been subtracted from total revenue.

Margin

The difference between the selling price of a product and the cost of producing it, often expressed as a percentage of the selling price.

Optimal Quantity

The quantity of a good or service that maximizes efficiency or utility, often where marginal cost meets marginal benefit.

Sweatshirt Production

The process of creating sweatshirts, involving the selection of materials, design, and manufacturing.