The process of endorsing a note and transferring it to a financial institution is known as:
A) dishonoring a note receivable.
B) discounting a note receivable.
C) cosigning a note receivable.
D) collecting a note receivable.

Question

Quizplus · Accepted Answer

Discounting a note receivable involves endorsing and transferring the note to a financial institution before its maturity date, usually for less than its face value, to obtain cash immediately.

The Process of Endorsing a Note and Transferring It to a Financial