The Primary Difference Between a Note Receivable and an Account

question 84

Multiple Choice

The primary difference between a note receivable and an account receivable is:

• A)A note receivable cannot be classified as a current asset.
• B)Borrowers have the option of not paying a note receivable.
• C)An account receivable is more likely to be collected.
• D)A note receivable is evidenced by a written debt instrument.

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Definitions:

Negligent

Failing to take proper care in doing something, leading to damage or harm to another.

Liability

The state of being legally responsible for something, such as a debt or obligation.

Inspect Brakes

The process of examining the braking system of a vehicle to ensure they are operating effectively and safely.

Express Warranty

is a seller's explicit commitment regarding the condition or quality of the product being sold, forming part of the contract.