A note receivable is a negotiable instrument which

Question

Quizplus · Accepted Answer

A note receivable is a written promise to receive a certain amount of money at a specified time or on-demand from another party. It can be transferred to another party by endorsement, making it a negotiable instrument. This allows the original holder of the note to sell or transfer it to another party for a fee or to raise funds. The other options are incorrect as a note receivable does not eliminate the need for a bad debts allowance, it is not a replacement for checks, and it can be collected by anyone who is the rightful holder of the note.

A Note Receivable Is a Negotiable Instrument Which