A Company Received a $15,000, 90-Day, 10% Note Receivable

question 162

True/False

A company received a $15,000, 90-day, 10% note receivable. The journal entry to record receipt of the note includes a debit to Notes Receivable.

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Definitions:

Chance

The occurrence of events in the absence of any predictable pattern or cause, associated with the concepts of probability and randomness.

Risk-neutral

A description of an investor or decision-maker who is indifferent between choices with different levels of risk, focusing solely on expected outcomes.

Investments

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Risk-averse

Describes an individual's preference for certainty or guaranteed outcomes over uncertainty or potential losses.