A customer's written promise to pay an amount of money to a business with interest is a(n) ________ of the business.

Question

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A note receivable is a written promise to pay an amount of money to a business with interest. It is an asset of the business as it represents the amount of money that the business expects to receive from the customer in the future. An account receivable is a similar concept, but it is not in the form of a written promise with interest like a note receivable. Account payable and note payable are obligations of the business to pay money to other parties, not promises of other parties to pay money to the business. Revenue is the income earned by the business from its operations.

A Customer's Written Promise to Pay an Amount of Money