Suppose a Customer Is Unable to Pay Its Account on Time,so

question 76

Multiple Choice

Suppose a customer is unable to pay its account on time,so the company accepts a six-month interest-bearing note receivable to replace the customer's account receivable.Over the next six months,what effect will accepting the note receivable have on the company's financial statements?

• A)Total assets increase.
• B)Total revenues increase.
• C)Net income increases.
• D)All of the other answers are financial statements effects that will occur.

---

Definitions:

Financial Manager

A person responsible for managing an organization’s financial activities, including planning, investments, and managing financial resources.

Capital Structure

The combination of borrowing and ownership funding a business employs to support its activities and expansion.

Financial Managers

Professionals responsible for the financial health of an organization, overseeing investments, planning, and managing financial activities.

Financial Management

The strategic planning, organizing, controlling, and monitoring financial resources with a view to achieve organizational goals and objectives.