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

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Definitions:

Oral Statement

A verbal expression or assertion made by an individual, often legally binding in certain contexts such as legal testimony.

Written Statement

A formal account or declaration of facts or opinions put in writing as proof or evidence of something.

Emotional Response

The psychological and physical reactions to emotional stimuli, affecting mood and behavior.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.