Which one of the following is evidence of indebtedness?
A)concentration policy
B)credit policy
C)credit instrument
D)credit cost curve
E)terms of sale

Question

Quizplus · Accepted Answer

A credit instrument, such as a promissory note or loan agreement, is a tangible proof of indebtedness between two parties. The other options (A) concentration policy, (B) credit policy, (D) credit cost curve, and (E) terms of sale may be related to credit practices, but they do not directly indicate the existence of a debt.

Which One of the Following Is Evidence of Indebtedness