A Note Payable Must Always Be Paid Before an Account

question 3

True/False

A note payable must always be paid before an account payable.

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Definitions:

Payment

The transfer of money or goods from one party to another as compensation or for goods and services received.

Restrictive Endorsement

A limitation placed on a check or other negotiable instrument, specifying conditions under which it can be transferred.

Conditional Endorsement

Conditional endorsement refers to a modification or restriction added to a document or contract that specifies certain terms or conditions must be met.

Conditional Endorsement

An endorsement on a negotiable instrument that limits its payment to certain conditions being met.