A promissory note
A) Is an account receivable
B) Is a written promise to pay a specified amount of money at a certain date
C) Is a liability to the payee
D) Is a written promise to pay a specified amount of money at a certain date and is a liability to the payee
E) All of these

Question

Quizplus · Accepted Answer

A promissory note is indeed a written promise to pay a specified amount of money at a certain date. It is an asset to the holder (payee) and a liability to the maker (payer), but option B is the only one that correctly identifies it without incorrectly classifying it as a liability to the payee or as an account receivable.

A Promissory Note