With regard to notes receivable,which of the following statements is CORRECT?
A)Notes receivable are less formal contracts than accounts receivable.
B)Notes receivable are also called promissory notes because a written promise to pay is not required.
C)All notes receivable require the borrower to pledge collateral.
D)The borrower signs a written promise to pay the lender a definite sum at the maturity date,with interest.

Question

Quizplus · Accepted Answer

Notes receivable are formal contracts, unlike accounts receivable. They require a written promise to pay, and collateral may or may not be required depending on the creditworthiness of the borrower. The borrower signs a written promise to pay the lender a definite sum at the maturity date, with interest.

With Regard to Notes Receivable,which of the Following Statements Is