Company a Has a Note Receivable of $5,000

question 13

Multiple Choice

Company A has a Note Receivable of $5,000. The note will be collected in installments. $1,000 is due within a year and the remainder is due after a year. The classification of the note on the balance sheet is:

• A) all $5,000 is a current asset.
• B) all $5,000 is a long term asset.
• C) $1,000 is a current asset and $4,000 is a long-term asset.
• D) $4,000 is a current asset and $1,000 is a long-term asset.

---

Definitions:

Statistical Relationship

A quantifiable correlation or association between two or more variables, identified through statistical analysis.

Variables

Elements or factors that can change and potentially affect the outcome of research or experiments.

Observational Studies

Research methods in which subjects are observed in their natural environment without any manipulation by the researcher.

Cause and Effect

The principle that every event (effect) has a cause or reasons behind it, and every cause leads to an effect.