An advantage of a promissory note receivable over an account receivable is that it:
A) establishes formal proof against the borrower.
B) has a specified interest rate and maturity date.
C) collects interest revenue from the borrower.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

All the options listed are advantages of a promissory note receivable over an account receivable. A promissory note provides formal proof against the borrower, specifies an interest rate and maturity date, and allows the holder to collect interest revenue, making all the statements correct.

An Advantage of a Promissory Note Receivable Over an Account