How does an account receivable differ from a note receivable?
A)A note receivable is an asset while an account receivable is not.
B)An account receivable is a written pledge while a note receivable is not.
C)An account receivable is always an amount due from the company's customers while a note receivable is always an amount due from a bank.
D)Notes receivable are written pledges while Accounts Receivable are not.

Question

Quizplus · Accepted Answer

Notes receivable are formal written agreements that include interest payments, while accounts receivable typically arise from credit sales to customers and do not involve a formal written agreement or interest payments.

How Does an Account Receivable Differ from a Note Receivable