An Advantage of a Promissory Note Receivable Over an Account

question 105

Multiple Choice

An advantage of a promissory note receivable over an account receivable is that it:

• A) establishes formal proof against the borrower.
• B) has a specified interest rate and maturity date.
• C) collects interest revenue from the borrower.
• D) All of these answers are correct.

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Definitions:

Systematic Desensitization

A therapy technique used to treat phobias and anxiety, involving gradual exposure to the feared object or situation while practicing relaxation techniques.

Phobia of Closed Spaces

A phobia of closed spaces, commonly known as claustrophobia, is an anxiety disorder characterized by an irrational fear of being confined in small or enclosed spaces.

Cognitive Therapy

A form of psychotherapy that emphasizes the role of thinking in how we feel and in what we do, aimed at changing negative patterns of thought.

Major Depressive Disorder

A mental disorder characterized by a persistent and intense feeling of depression that affects how a person feels, thinks, and handles daily activities.