A Customer's Written Promise to Pay an Amount of Money

question 122

Multiple Choice

A customer's written promise to pay an amount of money to a business with interest is a(n) ________ of the business.

• A)account receivable
• B)account payable
• C)note receivable
• D)note payable

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Definitions:

Jurisdiction

The official power or authority of a legal body to make decisions and judgments in a specific geographic area or over certain types of legal cases.

Promissory Note

A written promise to pay a specified sum of money to a designated person or the bearer at a specified date or on demand.

Negotiated

Negotiated refers to having discussed and agreed upon terms or conditions through a process of bargaining or dialogue between parties.

Holder

The person in possession of a negotiable instrument.