A Promissory Note Received from a Customer in Exchange for an Account

question 66

Multiple Choice

A promissory note received from a customer in exchange for an account receivable:

• A) Is a cash equivalent for the recipient.
• B) Is an account receivable for the recipient.
• C) Is a note receivable for the recipient.
• D) Is a short-term investment for the recipient.
• E) Is a note payable for the recipient.

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Definitions:

Marginal Cost

The additional expense incurred from manufacturing an extra unit of a product or service.

Wage Rate

The amount of compensation an employee receives per unit of time or per task performed, often expressed per hour or piece.

Monopsonist

A market situation in which there is only one buyer for a product or service.

Labor Supply Curves

Graphical representations that illustrate the relationship between the wage rate and the quantity of labor that workers are willing to supply.