For Legal Reasons, It Is Not Advisable to Accept a Note

question 156

True/False

For legal reasons, it is not advisable to accept a note receivable in exchange for an overdue account receivable.

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Definitions:

Remaining Partners

The partners who continue the business operations of a partnership after one or more partners have exited.

Independent Appraisal

An evaluation conducted by a neutral third-party to determine the value of a property, business, or other asset.

Capital Account Balances

The amounts recorded in the equity section of a company’s balance sheet, representing the net worth contributed by owners or shareholders.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.