List the Characteristics of Promissory Notes

question 8

Essay

List the characteristics of promissory notes.
b. List the reasons for obtaining promissory notes from customers.
c. What action relating to promissory notes must be taken at the end of the accounting period?
1. Promissory notes give the holder stronger legal claims to assets than accounts receivable, thus they are preferable if the maker declares bankruptcy.
2. Promissory notes have definite due dates and bear interest at a stated rate.
3. Promissory notes are formal promises to pay.
(b) Reasons for obtaining promissory notes from customers include
a. List the characteristics of promissory notes.
b. List the reasons for obtaining promissory notes from customers.
c. What action relating to promissory notes must be taken at the end of the accounting period?

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Definitions:

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A method of learning that employs rewards and punishments for behavior, leading to changes in the probability of the behavior's occurrence.