A promissory note:
A) Is another name for an installment receivable.
B) Is a short-term investment for the maker.
C) Is a written promise to pay a specified amount of money at a certain date.
D) Is a liability to the payee.
E) Cannot be used in payment of an account receivable.

Question

Quizplus · Accepted Answer

A promissory note is a written promise to pay a specified amount of money on a certain date. It is a binding legal contract between the borrower/maker and the lender/payee.

A Promissory Note