How will the payee of the promissory note record the note on its books?
A)The promissory note will be recorded as an asset.
B)The promissory note will be recorded as a liability.
C)The promissory note will be recorded as revenue.
D)The promissory note will be recorded as an expense.

Question

Quizplus · Accepted Answer

The payee of a promissory note will record the note as an asset because it represents a promise of payment from the borrower. As the payee expects to receive payment in the future, the note is considered an asset.

How Will the Payee of the Promissory Note Record the Note