What Is the Distinguishing Characteristic Between Accounts Receivable and Notes

question 165

Multiple Choice

What is the distinguishing characteristic between accounts receivable and notes receivable?

• A)Accounts receivable are usually current assets,while notes receivable are usually long-term assets.
• B)Accounts receivable require payment of interest if not paid within the usual credit terms.
• C)Notes receivable result from credit sale transactions for merchandising companies,while accounts receivable result from credit sale transactions for service companies.
• D)Notes receivable result from a written promise to pay within a specified amount of time.

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Definitions:

Katz's Skills Model

A leadership model proposed by Robert Katz that suggests three core leadership skills: technical, human, and conceptual.

Tax Law

The legal domain encompassing rules, policies, and procedures that oversee the legal process regarding taxation.

Accounting Principles

Fundamental concepts and rules that guide the practice of accounting, ensuring transparency, consistency, and accuracy in financial reporting.

Skills Model

A framework suggesting that effective leadership is based on certain learnable skills, including technical, human, and conceptual skills.