A Note Receivable Due in Five Years Is Listed on the Balance

question 15

Multiple Choice

A note receivable due in five years is listed on the balance sheet under the caption:

• A) investments.
• B) current assets.
• C) fixed assets.
• D) stockholders' equity.

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Definitions:

Account Payable

Liabilities of a company that represent its obligations to pay off a short-term debt to its creditors or suppliers.

Temporary Working Capital

Working capital that supports seasonal peaks in business.

Seasonal Businesses

Companies that experience significant fluctuations in business activity due to seasonal factors such as holidays, weather, and consumer habits.

Customer Receivables

Money owed to a business by its customers for products or services delivered on credit.