Which of the following is not true regarding promissory notes?
A)Promissory notes are not shown at net realizable value on the statement of financial position.
B)Promissory notes are usually interest-bearing.
C)Promissory notes give a stronger legal claim to the holder than accounts receivable.
D)Promissory notes are frequently accepted from customers who need to extend the payment of an outstanding account receivable.

Question

Quizplus · Accepted Answer

Promissory notes are shown at their net realizable value on the statement of financial position. This is the amount that the holder expects to receive after any necessary deductions or discounts.

Which of the Following Is Not True Regarding Promissory Notes