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

Question

Quizplus · Accepted Answer

An account receivable is an unpaid invoice for goods or services that a business has provided to a customer. An account payable is a debt that a business owes to a supplier for goods or services that have been received but not yet paid for. A note receivable is a written promise from a customer to pay a business a specific sum of money on a specific date, often with interest. A note payable is a written promise from a business to pay a specific sum of money to a lender or creditor on a specific date, often with interest. Therefore, the correct answer is C, because a note receivable is a customer's written promise to pay an amount of money to a business with interest.

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