The receivable that is usually evidenced by a formal, written instrument of credit is a (n)
A) trade receivable
B) note receivable
C) accounts receivable
D) income tax receivable

Question

Quizplus · Accepted Answer

A note receivable is a formal written agreement between a borrower and a lender, usually including an interest rate, repayment terms, and due date. This type of receivable is different from an accounts receivable, which is an amount owed to a company by a customer for goods or services sold on credit. Trade receivables refer to amounts owed by customers for regular business transactions, while income tax receivables are amounts owed by a government to a taxpayer for overpayment of taxes.

The Receivable That Is Usually Evidenced by a Formal, Written