A note receivable discounted with recourse is
A) A contingent liability
B) An outright sale of a note receivable to a bank
C) Sold to a bank and the bank assumes liability
D) A contingent liability and an outright sale of a note receivable to the bank
E) An outright sale of a note receivable to a bank and the bank assumes liability

Question

Quizplus · Accepted Answer

When a note receivable is discounted with recourse, the company remains liable if the note is not paid at maturity, making it a contingent liability.

A Note Receivable Discounted with Recourse Is