All of the following are characteristics of notes receivable except, notes receivable:
A)are usually evidenced by a more formal agreement called a promissory note.
B)generally require the maker to pay interest on the receivable.
C)are generally for a longer period than a regular accounts receivable.
D)are used by most businesses for very large amounts and are therefore almost always shown separately on the financial statements.

Question

Quizplus · Accepted Answer

Notes receivable are not necessarily used for very large amounts and may be used for smaller amounts as well. They are also not always shown separately on the financial statements, as they may be included with other receivables. The other characteristics listed (A, B, and C) are generally true for notes receivable.

All of the Following Are Characteristics of Notes Receivable Except