All the following are characteristics of notes receivable except, notes receivable
A) Are usually evidenced by a more formal agreement called a promissory note
B) Generally require the maker to pay interest on the receivable
C) Are generally for a longer period than a regular accounts receivable
D) Are used by most businesses for very large amounts and are therefore almost always shown separately on the financial statements
E) The maker is the person who promises to pay the note at maturity

Question

Quizplus · Accepted Answer

While notes receivable are usually evidenced by a formal agreement and may require interest payments, they are not necessarily for a longer period than regular accounts receivable and may be used for a range of amounts. Additionally, the maker of the note is the one who promises to pay it at maturity, which is a common characteristic of notes receivable. However, notes receivable are not always shown separately on financial statements and may be combined with other receivables.

All the Following Are Characteristics of Notes Receivable Except, Notes