For the payee,being given additional time to settle an account with issuance of a note results in a shift of:
A)assets from Notes Receivable to Accounts Receivable.
B)assets from Accounts Receivable to Notes Receivable.
C)liabilities from Notes Payable to Accounts Payable.
D)liabilities from Accounts Payable to Notes Payable.

Question

Quizplus · Accepted Answer

Issuing a note means the payee is promising to pay at a future date, so the asset shifts from Accounts Receivable (which is immediately due) to Notes Receivable (which is due at a later date).

For the Payee,being Given Additional Time to Settle an Account