Which of the Following Expresses the Distinction Between Accounts Receivable

question 111

Multiple Choice

Which of the following expresses the distinction between accounts receivable and notes receivable?

• A) Accounts receivable usually includes current assets; notes receivable usually includes long-term assets.
• B) Accounts receivable requires payment of interest; notes receivable does not.
• C) Notes receivable results from credit sale transactions for merchandising companies; accounts receivable results from credit sale transactions for service companies.
• D) Notes receivable generally specifies an interest rate and a maturity date at which any interest and principle must be repaid; accounts receivable does not.

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Definitions:

Targeted

Refers to actions or strategies narrowly directed towards a specific goal or audience.

Nonprofit Organizations

Entities that operate for a purpose other than making a profit, often focusing on charitable, educational, or social objectives.

Discriminatory Practices

Actions or policies that treat individuals or groups unfairly based on characteristics such as race, gender, age, or sexual orientation.

Outsourced Suppliers

Third-party companies or individuals that provide goods or services to another company under contract.