Which of the Following Statements Is False Regarding Promissory Notes

question 8

Multiple Choice

Which of the following statements is false regarding promissory notes?

• A)They are sometimes used to extend past-due accounts.
• B)They can be resold to banks.
• C)They must be held by the maker until maturity.
• D)They are often received upon the sale of machinery and automobiles.

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Definitions:

General Journal Entry

A basic accounting record used to document all the financial transactions of a business in chronological order.