A Promissory Note

question 58

Multiple Choice

A promissory note:

• A) Is a short-term investment for the maker.
• B) Is a written promise to pay a specified amount of money at a certain date.
• C) Is a liability to the payee.
• D) Is another name for an installment receivable.
• E) Cannot be used in payment of an account receivable.

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Definitions:

Buying

The action of purchasing goods or services.

T-Account

A graphic representation of a ledger account that is used in accounting to depict the effects of transactions on an account balance.

Mulch

A layer of material applied to the surface of soil to conserve moisture, improve fertility and health, reduce weed growth, and enhance visual appeal.