When Referring to a Note Receivable or Promissory Note

question 24

Multiple Choice

When referring to a note receivable or promissory note,

• A) the maker is the party to whom the money is due
• B) the note is not considered a formal credit instrument
• C) the note cannot be factored to another party
• D) the note may be used to settle an accounts receivable

---

Definitions:

Complimentary

Something given for free or at no charge.

Souvenir

An item kept as a reminder of a place, event, or experience, often collected during travels or special occasions.

Gift

A present or item given to someone willingly without expecting payment; often used in marketing as promotional material or a loyalty reward.

Referral

A prospect who has been referred to a salesperson by another person.