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A Note Receivable Differs from an Account Receivable in That

Question 86

Multiple Choice

A note receivable differs from an account receivable in that


A) a note receivable is a formal promise to pay; an account receivable is an informal promise to pay.
B) a note receivable is used for purchases over $1,000.
C) a note is used for a receivable that extends beyond one year.
D) there is no difference between an account receivable and a note receivable; they are interchangeable terms.

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