An Unconditional Written Promise to Pay a Definite Sum of Money

question 10

Multiple Choice

An unconditional written promise to pay a definite sum of money on demand or on a defined future date (or dates) is a(n) :

• A) Unearned revenue.
• B) Prepaid expense.
• C) Account payable.
• D) Promissory note.
• E) Account receivable.

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Definitions:

Unit Price

The cost assigned to a single unit of a product or service, facilitating price comparisons among similar products based on per unit costs.

Marginal Utility

The additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.

Hypothetical Consumer

A theoretical representation of an average consumer used in economic models to predict buying behavior and market dynamics.

Consumer Income

The total earnings of an individual or household from all sources, influencing their purchasing decisions.