Discounting a note receivable
A) Requires using an account called discount on notes receivable
B) Is the process of lending money
C) Is the process of selling a promissory note
D) Slows the collection process

Question

Quizplus · Accepted Answer

Discounting a note receivable involves selling a promissory note to a financial institution before its maturity date, allowing the holder to receive immediate cash.

Discounting a Note Receivable