A Promissory Note Is a Written Contract Between a Supplier

question 175

True/False

A promissory note is a written contract between a supplier and a business customer, with a promise that customer will pay supplier a specified amount by a certain date.

---

Definitions:

Impairment Losses

Losses recognized when the carrying amount of an asset, or a cash-generating unit, exceeds its recoverable amount.

Productive Life

is the period during which an asset remains functional and can produce goods or services that are useful for the entity owning it.

Physical Nature

The tangible attributes or qualities of an asset, product, or substance, often influencing its valuation, use, and management.

Purchase Date

The specific date on which an asset is acquired or a financial transaction is completed.