A Promise by a Customer to Pay Cash in the Future

question 159

Multiple Choice

A promise by a customer to pay cash in the future is a(n) :

• A)account receivable.
• B)liability.
• C)prepaid asset.
• D)note payable.

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Definitions:

Wisdom

The quality of having experience, knowledge, and good judgement; often associated with insights gained over a lifetime.

Disengagement Theory

Theory of aging that holds that successful aging is characterized by mutual withdrawal of the older person and society.

Activities

Actions or tasks that individuals engage in, often for purposes of leisure, recreation, or achieving specific goals.

Commitments

Promises or obligations that an individual has decided to carry out or fulfill.