With Regard to Notes Receivable,which of the Following Statements Is

question 96

Multiple Choice

With regard to notes receivable,which of the following statements is CORRECT?

• A)Notes receivable are less formal contracts than accounts receivable.
• B)Notes receivable are also called promissory notes because a written promise to pay is not required.
• C)All notes receivable require the borrower to pledge collateral.
• D)The borrower signs a written promise to pay the lender a definite sum at the maturity date,with interest.

---

Definitions:

Unit Level Activities

Activities that are performed each time a unit is produced, directly associated with production volume.

Batch Level Activity

Actions or processes that relate to producing a batch of goods or services, often involving costs that change with the number of batches produced rather than individual units.

Medical Clinic

A healthcare facility that primarily focuses on the care of outpatients, offering various medical services and treatments.

Activity-Based Costing

Activity-based costing is a method of allocating overhead costs to specific products or services based on the activities required to produce them, providing a more accurate reflection of the costs associated with each product or service.