The account title used for recording a written promise that a customer will pay the business a fixed amount of money and interest by a certain date in the future is ________.
A) Prepaid Note
B) Notes Payable
C) Notes Receivable
D) Accounts Receivable

Question

Quizplus · Accepted Answer

The account title used for recording a written promise that a customer will pay the business a fixed amount of money and interest by a certain date in the future is Notes Receivable. Prepaid Note is an advance payment made for goods or services yet to be received, Notes Payable is a liability account used to record the amount borrowed by a business, and Accounts Receivable is the amount of money owed to a business by its customers for goods or services sold on credit.

The Account Title Used for Recording a Written Promise That