Which of the Following Statements,regarding Notes Receivable,is Incorrect

question 50

Multiple Choice

Which of the following statements,regarding notes receivable,is incorrect?

• A) Notes receivable usually have longer terms than accounts receivable.
• B) A notes receivable is a written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future.
• C) All notes receivable are considered long-term assets.
• D) Notes receivable are sometimes called promissory notes.

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Definitions:

Negligent Liability

Legal responsibility for harm caused as a result of failing to act as a reasonable person would have acted under similar circumstances.

Certified Public Accountant

A professional accountant who has met certain education and licensing requirements and is qualified to perform accounting services for the public.

Financial Trouble

A situation where an individual or organization struggles to meet financial obligations due to insufficient funds or mismanagement.

Internal Revenue Code

The comprehensive body of tax laws and regulations governing the United States federal tax system.