How Will the Payee of the Promissory Note Record the Note

question 116

Multiple Choice

How will the payee of the promissory note record the note on its books?

• A)The promissory note will be recorded as an asset.
• B)The promissory note will be recorded as a liability.
• C)The promissory note will be recorded as revenue.
• D)The promissory note will be recorded as an expense.

---

Definitions:

Merchant Protection Rule

A legal principle that protects merchants in the course of business transactions, often involving warranty and liability matters.

Common Law

The body of recorded decisions that courts refer to and rely upon when making later legal decisions.

Comparative Negligence

A form of contributory negligence that requires the court to assign damages according to the degree of fault of each party.

Personal Safety

Measures and practices adopted to protect individuals from physical harm or danger.