A Written Promise to Pay a Specified Amount of Money

question 9

Multiple Choice

A written promise to pay a specified amount of money at a particular future date is called an) :

• A)maturity note.
• B)promissory note.
• C)unearned revenue.
• D)account receivable.

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Definitions:

Contractual Relationship

A legal bond formed between parties through a contract, entailing mutual rights and obligations.

Partnership Registration

The process of legally declaring a partnership to ensure it's recognized by law and able to conduct business.

Limited Liability

A legal structure where a person's financial responsibility is bounded to the amount invested in a business, protecting personal assets from company debts.

Professional Duties

Obligations that individuals in certain professions must follow based on standards of their profession and ethical guidelines.