A note is typically an unsecured debt that has a maturity period of less than 10 years. It can be issued by individuals, corporations, or government entities. A note doesn't require collateral, unlike long-term debt, and it's usually paid off using the issuer's future profits, cash flows, or sales revenues.

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A Note Is

Question 11

Multiple Choice

A note is:

A) unsecured debt that is generally payable within the next ten years.
B) a formal type of loan that is secured by real estate.
C) long-term debt secured by part, or all, of the assets of the borrower.
D) debt that is secured by a borrower's accounts receivables.
E) the written agreement which details the information relative to a bond issue.

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