A company's formal promise to pay (in the form of a promissory note) a future amount is a(n):
A) Account receivable.
B) Unearned revenue.
C) Note payable.
D) Prepaid expense.
E) Credit account.

Question

Quizplus · Accepted Answer

A promissory note represents a formal promise to pay a future amount, typically with interest, and is a form of note payable. The other options do not apply to a company's promise to pay in the form of a promissory note.

A Company's Formal Promise to Pay (In the Form of a Promissory