When referring to a note receivable or promissory note
A) the maker is the party to whom the money is due
B) the note is not considered a formal credit instrument
C) the note cannot be factored to another party
D) the note may be used to settle an account receivable

Question

Quizplus · Accepted Answer

A note receivable or promissory note can indeed be used to settle an account receivable, where the debtor acknowledges the debt formally and agrees to pay the creditor under specified conditions.

When Referring to a Note Receivable or Promissory Note