Which of the following statements,regarding notes receivable,is incorrect?
A) Notes receivable usually have longer terms than accounts receivable.
B) A notes receivable is a written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future.
C) All notes receivable are considered long-term assets.
D) Notes receivable are sometimes called promissory notes.

Question

Quizplus · Accepted Answer

Not all notes receivable are considered long-term assets. Depending on the expected payment date, they can be classified as short-term or long-term assets.

Which of the Following Statements,regarding Notes Receivable,is Incorrect