Which of the Following Accounts Will Be Credited by the Borrower

question 147

Multiple Choice

Which of the following accounts will be credited by the borrower when a promissory note is issued?

• A) Note Payable
• B) Note Receivable
• C) Interest Payable
• D) Cash

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Definitions:

Diversification

An investment strategy aimed at reducing risk by allocating investments across various financial instruments, industries, or other categories.

Professional Management

The process of overseeing and handling investment portfolios by experts or specialized firms to achieve specified investment objectives.

Investment Companies

Firms that pool funds from individuals to collectively invest in stocks, bonds, and other securities, offering diversification and professional management.

NAV

Net Asset Value, the total value of a fund's assets minus its liabilities, often used to determine the price of shares in a mutual fund or ETF.