Len Signs a Note "Payable to the Order of Account

question 57

Multiple Choice

Len signs a note "payable to the order of Account Collection Agency." Unless Len has a valid defense against payment, his liability on this note is​

• A) ​immediate.
• B) ​imposed only after payment is demanded.
• C) ​postponed until the note is dishonored by the payee.
• D) ​suspended until payment is due.

---

Definitions:

Cash Receipts

The total amount of money, including cash, checks, and credit card payments, received by a business during a specific period.

Authority and Responsibility

The granting of power to make decisions and the accountability that comes with those decisions within an organization.

Budgeted Cash Receipts

An estimation of the cash inflows that the organization anticipates receiving during a particular period, often as part of a budgeting process.

Bad Debts

Unrecoverable accounts receivable that a business deems uncollectible, similar to bad debt expense but focused on the receivable aspect.