A Promissory Note Received from a Customer in Exchange for an Account

question 132

Multiple Choice

A promissory note received from a customer in exchange for an account receivable is recorded by the payee as:

• A) A note payable.
• B) A note receivable.
• C) An account receivable.
• D) A cash equivalent.
• E) A short-term investment.

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Definitions:

Salespeople

Individuals who sell products or services to customers, focusing on meeting customer needs and closing sales transactions.

Endless Chain

A sales technique where current customers are used to generate leads for future sales by asking for referrals to new prospects.

Gutter Products

Items designed for the management and diversion of rainwater away from a building to protect its structure.

Customer Refers

The act of existing customers recommending or mentioning a business's products or services to potential new customers.